According to the report from the National Institute of Statistics (ISTAT), industrial production fell by 0.9% in July, offsetting the June increase (+0.5%). It was the biggest drop since April. Economists had expected a decrease of 0.1%.
The production of energy increased by 2.3% compared to July, while the production of capital goods fell by 1.2%. The drop in production was also recorded in the intermediate goods sector (-0.7%) and the consumer goods sector (-2.3%). Meanwhile, in the last three months (through July), industrial production fell by 0.4% compared to the previous three months.
In annual terms, industrial production fell by 3.3% in July after a decline of 2.6% in June. It was the 18th decline in a row. Consensus estimates suggested a reduction of 1.2%. Among the main sectors, growth was recorded only in the energy sector (+1.5%). Production declined in the intermediate goods sector (-2.8%), capital goods sector (-4.2%) and consumer goods sector (-5.2%).