ISTAT reports unexpected drop in Italy’s industrial production in May after April growth

ISTAT data released on Thursday shows an unexpected decline in Italy’s industrial production in May. Following a 1% increase in April (revised down to 0.9%), experts had anticipated the positive trend to continue. However, their forecasts did not materialize.

Italy’s output volumes fell by 0.7% in May. On a work day-adjusted year-on-year basis, ISTAT reports a 0.9% year-on-year decline. Analysts surveyed by Reuters had expected a 0.2% increase. Meanwhile, the April annual figure rose by 0.1%, marking the first positive move in over two years, the news agency notes.

The May downturn affected all economic sectors except energy. Nevertheless, experts are still optimistic, as the spring indicators showed a 0.6% increase.

The Prometeia think tank expects Italy’s production to grow in the second quarter compared to the first, though the outlook remains uncertain. Thus, the June manufacturing purchasing managers index (PMI) continued its prolonged streak of declines. Moreover, the downturn at the start of summer was sharper than in May, Reuters notes.