Italian industrial output dropped more than anticipated in October after falling the month prior, according to figures released on Tuesday, giving the fourth quarter a dismal start and raising concerns about a recession.
According to data from the national statistics office ISTAT, industrial output in the third-largest economy in the euro zone decreased 1.0% in October compared to September.
A 0.4% fall was predicted by 14 analysts polled by Reuters.
Data for September, which had previously been published at -1.8%, was slightly corrected to indicate a 1.7% month-over-month decline.
After a reduction of unrevised 0.5% in September, output decreased by 1.6% in October when workday adjustments were made.
According to ISTAT, it was up 0.3% in the three months to October compared to the May to July period.
Consumer, intermediate, and energy product production all decreased from the previous month in October, although investment goods production increased.
Strong domestic demand allowed Italy’s gross domestic product to grow by 0.5% in the third quarter compared to the previous three months, but the Treasury predicts GDP contractions in the fourth quarter and the first quarter of next year, making life difficult for the nation’s new right-wing Prime Minister Giorgia Meloni, who took office in October.
According to her government, this year’s growth rate would be 3.7% before rapidly declining to 0.6% in 2023. In comparison to most independent forecasts, the prediction for the following year is more optimistic.
ISTAT provided the information below. PRODUCTION INDUSTRIAL OCT SEPT AUG -1.0 -1.7r 2.2r Mth/Mth pct Change (adjusted) Yr/Yr pct Change (adjusted) Unadjusted percent change from year to year: -1.6 -0.5 2.9 -1.6 -0.4 2.8 NOTICE: 2015 = 100.
In October, ISTAT offered the following breakdown by major product group: % change adjusted from month to month Investment goods 0.2 Consumer goods -3.0 goodies in the middle -0.1 1.2 energy goods
ITALY ECONOMY/OUTPUT is a keyword.