Finance
Italy's July industrial output unexpectedly rises in renewed sign of recovery
Published by Global Banking & Finance Review®
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Italy's industrial output rose by 0.4% in July, defying expectations of a decline, signaling a recovery in the manufacturing sector.
ROME (Reuters) - Italian industrial output rose by 0.4% in July from the previous month, data showed on Wednesday, in a further sign of recovery for the long-struggling manufacturing sector.
A Reuters survey of 14 analysts had pointed to a 0.1% decrease.
The data was the second positive surprise in a row, after a 0.2% month-on-month rise in June compared to a forecast of a 0.1% fall.
On a work day-adjusted year-on-year basis, industrial output was up by 0.9% in July, following a 0.7% decrease in June revised from an originally reported 0.9% fall, national statistics agency ISTAT said.
Retail lobby Confcommercio said the industrial sector is showing "signs of vitality", and emphasized that July's growth extended to all major industry groups with the exception of energy.
"Signs that the downturn is over are strengthening," think tank Prometeia wrote in a report.
Some hope of recovery was also offered earlier this month by a PMI survey, showing that the Italian manufacturing sector returned to growth in August after 16 months of contraction.
Despite rising industrial output, outlook for growth at the euro zone's third largest economy is still cloudy after GDP shrank by 0.1% in the second quarter from the previous three months.
The government in April halved its economic growth estimate for 2025 to 0.6% amid mounting uncertainty due to U.S. trade tariffs.
Economy Minister Giancarlo Giorgetti on Sunday said that the economy will likely grow by 0.6% this year, in line with the government's target.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Giulia Segreti)
Italian industrial output rose by 0.4% in July from the previous month.
A Reuters survey of 14 analysts had pointed to a 0.1% decrease in industrial output.
The PMI survey showed that the Italian manufacturing sector returned to growth in August after 16 months of contraction.
Despite rising industrial output, the outlook for growth at Italy's economy remains cloudy after GDP shrank by 0.1% in the second quarter.
The government in April halved its economic growth estimate for 2025 to 0.6% amid uncertainty due to U.S. trade tariffs.
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