Italy industry output rises in April as long slump eases

By Antonella Cinelli

ROME (Reuters) -Italian industrial output rose unexpectedly in April from the month before, data showed on Tuesday, and increased from the year before for the first time in more than two years, in a sign of recovery for the long-struggling manufacturing sector.

Industrial output in the euro zone's third-largest economy rose 1.0% in April from March, national institute ISTAT reported, versus a forecast of a 0.2% drop in a Reuters survey of 16 analysts.

On a work day-adjusted year-on-year basis, industrial output was up by 0.3% versus a forecast for a 1.4% decline, marking the first rise after 26 consecutive declines.

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

In a sign of progressive stabilisation, in the three months to April output was up 0.4% from the November-January period.

"The chances that the bottom has been reached are improving," said Paolo Pizzoli, senior economist at ING, while "it still seems too early to call it a cyclical rebound for industry".

Bologna-based think-tank Prometeia forecast that industrial output in the second quarter would rise 0.5% from the previous three months.

ISTAT said last week 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.

Nonetheless, Tuesday's figures signal a firm start to the second quarter after ISTAT last month revised up gross domestic product data for the first three months, providing a better platform for the year as a whole.

Italy's manufacturing sector also showed tentative signs of stabilisation in May, when output rose slightly for the first time in over a year despite continued weakness in new orders, a survey showed this month.

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)

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