According to the report from the National Institute of Statistics (ISTAT), industrial production rose by 0.1% in February after falling by 1.4% in January (revised from -1.2%). Economists had expected an increase of 0.5%. The production of capital goods increased by 3.5% compared to January, while the production of intermediate goods increased by 0.1%. The production of consumer goods fell by 0.8% m/m, and production of energy decreased by 2.0% m/m. Meanwhile, in the last three months (through February), industrial production fell by 0.7% compared to the previous three months.
In annual terms, industrial production fell by 3.1% in February after a decline of 3.7% in January (revised from -3.4%). It was the 13th decline in a row. Consensus estimates suggested a reduction of 2.8%. Among the main sectors, growth was recorded only in the capital goods sector (+1.7%). Meanwhile, production declined in the intermediate goods sector (-2.1%), energy sector (-4,2%) and consumer goods sector (-5.3%).
Earlier this week, the Italian government lowered its growth forecast for this year and next, reflecting an uncertain economic outlook. The Treasury forecast GDP to grow by 1% this year, down from a 1.2% projection made in September. The latest projection remains significantly above the consensus of most independent bodies, which project Italian growth of around 0.7%. For 2025, Italy marginally increased its estimate to 3.7% from a previous 3.6% goal.