Italy industry output falls in May in renewed sign of weakness

By Antonella Cinelli

ROME (Reuters) -Italian industrial output fell 0.7% in May from the month before, data showed on Thursday, reversing a surprise rise in April and pointing to further weakness for the country's struggling manufacturing sector.

A Reuters survey of 14 analysts had pointed to a flat reading after a 0.9% rise the month before, revised from an originally reported 1.0% increase.

On a work day-adjusted year-on-year basis, industrial output in the euro zone's third largest economy was down by 0.9% in May, national statistics agency ISTAT said, versus a forecast for a 0.2% rise.

In April, output had increased by 0.1% from the year before, the first rise in more than two years.

May's month-on-month fall extended to all industrial sectors with the exception of energy, ISTAT said.

It added, however, that a stabilisation of industrial activity appears to be in progress, as signalled by a 0.6% increase in the three months to May from the December-February period.

Think-tank Prometeia said the second quarter may post a marginal rise in industrial output from the previous three months, which would be a second straight quarterly increase and signal a "timid change of course" compared with the recent past.

Yet the outlook remains highly uncertain, with a survey of manufacturing sector purchasing managers last week showing contraction for a 15th consecutive month in June and at a steeper rate than in May, reversing recent tentative signs of recovery.

"Industry looks set to remain a minor growth driver, if a driver at all, placing the burden on services to sustain momentum", said Paolo Pizzoli, senior economist at ING.

ISTAT last month forecast Italy's economy would grow by 0.6% this year amid mounting uncertainty over the impact of U.S. President Donald Trump's trade tariff policy, trimming a previous forecast of 0.8% made in December.

Prime Minister Giorgia Meloni's government in April halved its economic growth estimate for 2025 to 0.6%, broadly in line with the expectations of most analysts.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• U.S. debt tops $40 trillion
• Motor racing-Milei puts himself in the driver's seat to bring F1 back to Argentina
• Two US tanker aircraft leave Bulgaria a month after deployment upset Iran