Italy industry output rises unexpectedly in June after May slump

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ROME (Reuters) -Italian industrial output rose unexpectedly in June by 0.2% from the month before, data showed on Wednesday, a tentative sign of recovery for the long-struggling manufacturing sector following a negative surprise in May.

A Reuters survey of seven analysts had pointed to a 0.1% decrease.

On a year-on-year basis, net of calendar effects, industrial output was down by 0.9% in June, following a 1.0% decrease in May revised from an originally reported 0.9% fall.

National statistics agency ISTAT revised down May's data to a 0.8% month-on-month fall, from an originally reported 0.7% decrease.

June's month-on-month gain extended to all industrial sectors with the exception of consumer goods, ISTAT said, adding that in the second quarter output was up 0.1% from the January-March period.

The outlook for industrial output in the third largest EU economy remained uncertain after it fell 1.1% year-on-year in the first half of the year, ISTAT said.

The Italian economy unexpectedly shrank by 0.1% in the second quarter compared to the first, preliminary data showed last week, possibly reflecting the early impact of a rise in U.S. tariffs and global trade uncertainty.

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.

Tentative signs of stabilisation in the manufacturing sector, however, arrived last week from a survey of purchasing managers, despite a contraction for a 16th consecutive month in July.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Cristina Carlevaro and Jane Merriman)