Italy Industry


Italy: Industrial production surprises on the downside

November 10, 2010

In September, industrial output dropped a seasonally-adjusted 2.1% over the previous month. The figure contrasted the 1.6% increase recorded in August and market expectations of a 0.3% rise. In fact, the contraction marked the strongest drop in industrial output since March 2009. At a sector level, the deterioration was led by the all-important manufacturing sector which fell 2.1% over the previous month, contrasting the 2.0% month-on-month increase recorded in August. Mining and quarrying, in contrast, rose 0.8% mom, reversing the 3.9% mom drop recorded in August while the electricity, gas and water supply sector fell 2.9% mom (August: -3.0% mom). On an annual basis, industrial output rose a calendar-adjusted 4.1%; less than half the previous month's 9.7% increase. Despite the slowing, the trend continued to improve as annual average growth in industrial production stepped up from minus 0.5% in August to 1.5% in September, which represented the first entry into positive territory in over two years.

Author:, Head of Data Solutions

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