Italy industry output rises in April as long slump eases

ROME (Reuters) -Italian industrial output rose unexpectedly in April from the month before, data showed on Tuesday, and increased from the year before for the first time after 26 declines in a sign of recovery for the long-struggling manufacturing sector.

Industrial output in the euro zone's third-largest economy rose 1.0% in April from March, national institute ISTAT reported, versus a forecast of a 0.2% drop in a Reuters survey of 16 analysts.

On a work day-adjusted year-on-year basis, industrial output was up by 0.3% versus a forecast for a 1.4% decline.

April's month-on-month gain extended to all industrial sectors with the exception of energy, ISTAT said.

In a sign of progressive stabilisation, in the three months to April output was up 0.4% from the November-January period.

The statistics bureau said last week Italy's economy would grow by 0.6% this year amid mounting uncertainty over the impact of U.S. President Donald Trump's trade tariff policy, trimming a previous forecast of 0.8% made in December.

Nonetheless, Tuesday's figures signal a firm start to the second quarter after ISTAT last month revised up gross domestic product data for the first three months, providing a better platform for the year as a whole.

Italy's manufacturing sector also showed tentative signs of stabilisation in May, when output rose slightly for the first time in over a year despite continued weakness in new orders, a survey showed this month.

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.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)