Key facts
- Italian industrial output decreased by 0.3% in May compared to April.
- This marks the end of a three-month positive streak for industrial production.
- A Reuters survey of analysts had forecast a 0.2% decline for May.
- On a year-on-year basis, industrial output increased by 1.1% in May.
- The Italian government has lowered its economic growth forecast for the current year and next.
Italian industrial output experienced a setback in May, falling by 0.3% from the previous month, according to official data released on Friday. This decline ended a three-month period of positive growth and signals a renewed slowdown in the manufacturing sector of Europe's third-largest economy. Analysts surveyed by Reuters had anticipated a 0.2% decrease, indicating that the actual fall was steeper than expected.
Despite the monthly contraction, industrial production for the March-to-May period showed a 0.9% increase compared to the preceding three months. The national statistics agency, ISTAT, also slightly revised down the April month-on-month figure to a 0.4% rise from the initially reported 0.5% increase.
On a year-on-year basis, adjusted for working days, industrial output grew by 1.1% in May. This figure was slightly below the forecast of a 1.3% increase and mirrored the 1.1% rise seen in April, which was also revised downward from its initial report.
The economic outlook for Italy remains uncertain, with continuing turmoil in the Middle East contributing to concerns about rising energy costs and geopolitical tensions. Reflecting these challenges, the Italian government reduced its economic growth projections to 0.6% for both the current year and the next, down from earlier targets of 0.7% and 0.8% respectively.