Italy: Another drop in industrial output in April casts a shadow on economic performance in Q2
Industrial output contracted 0.7% in April on a month-on-month, seasonally-adjusted basis, following March’s revised 1.0% decrease (previously reported: -0.9% month-on-month). April’s drop came on the back of lower production in the manufacturing, and mining and quarrying sectors. In contrast, production of electricity, gas, steam and air conditioning swung from contraction to expansion. Within the important manufacturing sector, the production of machinery and equipment, and of electrical and electronic equipment fell sharply. However, the manufacture of pharmaceutical products—traditionally quite volatile—expanded significantly.
On an annual basis, industrial production shrank 1.5% in April in calendar-adjusted terms, following March’s 1.6% drop. Meanwhile, annual average growth in industrial output was equal to minus 0.7% in April, down from the minus 0.4% print in March and the weakest reading in four years.