Italy Industrial Production Slumps

Italian industrial production was down 1.8% in July with respect to June and by 1.3% compared to the same month in 2017, according to calendar-adjusted data released by national statistics agency ISTAT on Wednesday. 

It was the first year-on-year fall in output since June 2016 and the biggest one since a 1.8% drop in January 2015, ANSA reported.

Economists had forecast a 1.60% increase. Compared to the previous month, industrial production decreased 1.8% in July, the first fall in three months. Economists had expected output to fall 0.3%. June’s growth was revised down to 0.3% from 0.5%.

Capital goods output dropped 2.2% and consumer goods production fell 1.7%. Manufacture of intermediate goods shrunk 1.2% and energy output decreased 0.8%.

On an unadjusted basis, industrial production grew 1.8% year-on-year in July after a 1.4% rise in June.

Meanwhile, production at factories in the eurozone dropped in July for a second consecutive month and by more than expected, in what could herald a possible slowdown of the bloc’s economy in the third quarter, official data released on Wednesday showed, Reuters said.

The fall was mostly caused by bad data from Germany, the bloc’s largest economy, and Italy, which has gone through a stormy summer with market jitters over large spending plans of its new euroskeptic government.

The European Union statistics agency Eurostat said industry output in the 19-country currency bloc fell in July by 0.8% during the month and by 0.1% year-on-year.

The numbers are a negative surprise after economists polled by Reuters had forecast a smaller 0.5% drop month-on-month and a 1% rise from a year earlier.

Eurostat also revised its figures for June, saying industrial production fell 0.8% on the month, a bigger fall than the previous estimate of 0.7%.