World Economy

Italy Industry Output Falls More Than Expected

Italy Industry Output Falls More Than Expected Italy Industry Output Falls More Than Expected

Italian industrial output was slightly weaker than expected in August, falling 0.5% after a 1.1 rise in July and continuing the recent-see-sawing trend, national statistics institute ISTAT reported on Friday, Economic Times reported.

Industrial output, which shows a strong correlation with gross domestic product in the euro zone’s third largest economy, was flat in the three months to August compared with the March-to-May period.

The data is unlikely to change the view of most economists that Italy is on track for a modest growth recovery this year after a three-year recession between 2012-2014.

The August output figures were below market expectations. The median forecast of a Reuters’ poll of 21 analysts had projected a 0.3% fall.

However, output data in Italy can be be extremely volatile in August, when seasonal adjustments are often distorted by the fact that many factories close for the summer holidays.

Italian gross domestic product rose 0.3% in the second quarter, after a 0.4% increase in the first.

Matteo Renzi’s government expects full year growth in 2015 of 0.9%, followed by growth of 1.6% next year.

Industrial output is gradually recovering after falling by around a quarter between 2008, when the global financial crisis began, and the end of 2014.

August’s data showed declines in output of energy products, consumer goods and intermediate goods, while production of investment goods was flat.

ISTAT reported that on a work-day adjusted year-on-year basis, output in August was up 1.0%, following a 2.8% rise in July which was marginally revised up from an originally reported increase of 2.7 %.