Italy: Industrial production rises unexpectedly
October 10, 2010
In August, industrial output increased 1.6% over the month before in seasonally-adjusted terms. The figure came in above the 0.3% increase recorded in July and contrasted market expectations of a 0.1% drop. At a sector level, the improvement compared to the previous month was led by the all-important manufacturing sector, the only one to record a better performance compared to July. Manufacturing jumped 2.0% over the previous month, up from the 0.2% month-on-month increase recorded in July. Mining and quarrying dropped 4.0% mom, contrasting the 4.8% mom increase recorded in July and, finally electricity, gas and water supply fell 2.8% mom (July: +5.4% mom). On an annual basis, industrial output rose a calendar adjusted 9.5%, which was up from the previous month's 5.6% increase. The result marked the sharpest increase since December 1997, but was favoured by a low calculation base, as industrial output had plunged 18.0% in August 2009. As a consequence of the positive monthly reading, the trend continued to improve, as the annual average growth in industrial production stepped up from minus 1.9% in July to minus 0.5%.
Author: Armando Ciccarelli, Head of Data Solutions