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Italy: Industrial production bounces 0.9% in May

Milan (AWP / AFP), Industrial production in Italy, rose 0.9% in May after falling both in March (-1%) and April (-0.8%), said Wednesday the National Institute of Statistics (Istat).

This result is better than expected. For example, analysts at Intesa Sanpaolo forecast stagnation.

Production resumed with growth, after the rise in February (+ 0.8%) and especially the sharp surprise increase in January (+ 1.8%) that ended four consecutive months of decline.

The index is sharply up for capital goods (+ 1.9%) and slightly lighter for consumer goods (+ 0.9%) and intermediate goods (+ 0.6%). On the other hand, production fell by 2.1% in the energy sector.

Over one year, and adjusted for calendar effects, industrial production is down 0.7%.

The index rose only for consumer goods (+ 0.7%). On the other hand, it decreased by 1.7% for intermediate goods, 0.8% for capital goods and 0.5% for energy.

Activity with the largest year-on-year increase was the food, beverages and tobacco industry (+ 2.8%), while textile and leather goods manufacturing recorded the largest decline again ( -4.9%).

Italy recorded an increase in Gross Domestic Product (GDP) of only 0.1% in the first quarter after experiencing a “technical recession” in the last half of 2018.

On June 20, Istat judged “ likely” a decline in GDP in the second quarter.

We expect growth in the peninsula to reach 0.3% in 2019, according to Istat, whose forecasts are slightly higher than those of the government, which counts on 0.2%.

The European Commission and the International Monetary Fund (IMF) forecast growth of 0.1% for the peninsula, the worst performance in the euro area.

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