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Home > Finance > Italy industry output falls in December, but signs long slump is easing

Italy industry output falls in December, but signs long slump is easing

Published by Global Banking & Finance Review®

Posted on February 11, 2026

2 min read

Last updated: February 11, 2026

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Tags:GDP economic growth

Quick Summary

Italy's industrial output fell in December but rose year-on-year, signaling a potential recovery from a prolonged slump.

Italy's Industrial Output Declines in December, Signs of Recovery Emerge

Overview of Italy's Industrial Output

ROME, Feb 11 (Reuters) - Italian industrial output fell 0.4% in December compared to the previous month, data showed on Wednesday, but it still rose in the fourth quarter and was up year-on-year, in signs the country's long manufacturing slump may be easing.

Monthly and Yearly Trends

A Reuters survey of 13 analysts had pointed to a 0.5% decrease in December, after a 1.5% month-on-month rise in November.

Sector Performance Analysis

December's drop resulted from a decline in output of consumer goods and intermediate products, which outweighed increases for energy and investment goods, national statistics agency ISTAT said.

Economic Growth Projections

However, in the fourth quarter, industrial output in the European Union's third largest economy was up 0.9% compared to the previous three months.

Moreover, on a work day-adjusted, year-on-year basis, industrial output rose 3.2% in December following a 1.4% rise in November, in tentative signs of recovery.

In 2025 as a whole, Italy's industrial output fell by 0.2%, following decreases of 4% and 2% respectively in 2024 and 2023, ISTAT said.

Earlier this month, a purchasing managers' survey showed Italian manufacturing contracted in January for a second month in a row, albeit at a marginally slower pace than in December.

In the fourth quarter of 2025, Italian gross domestic product grew by 0.3% from the previous three months and was up 0.8% year-on-year, data showed last month, a stronger reading than expected which bolstered the outlook for this year.

Over the whole of 2025, the economy grew by 0.7% from the year earlier, when adjusted for the number of working days, ISTAT's flash estimate showed on January 30.

It will release on March 2 non-workday-adjusted growth data for last year, comparable with the government's 0.5% target.

Rome has set a growth target of 0.7% for this year.

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

Key Takeaways

•Italy's industrial output fell 0.4% in December.
•Output rose 3.2% year-on-year in December.
•Fourth quarter output increased by 0.9%.
•Consumer goods and intermediate products declined.
•Italy's GDP grew by 0.3% in Q4 2025.

Frequently Asked Questions about Italy industry output falls in December, but signs long slump is easing

1What are consumer goods?

Consumer goods are products that are purchased by individuals for personal use, such as clothing, food, and electronics.

2What is economic growth?

Economic growth refers to the increase in the production of goods and services in an economy over a period, typically measured by GDP.

3What is a purchasing managers' survey?

A purchasing managers' survey is a monthly survey of purchasing managers in various sectors, providing insights into economic trends and business conditions.

Overview of Italy's Industrial Output

Monthly and Yearly Trends

A Reuters survey of 13 analysts had pointed to a 0.5% decrease in December, after a 1.5% month-on-month rise in November.

Sector Performance Analysis

December's drop resulted from a decline in output of consumer goods and intermediate products, which outweighed increases for energy and investment goods, national statistics agency ISTAT said.

Economic Growth Projections

However, in the fourth quarter, industrial output in the European Union's third largest economy was up 0.9% compared to the previous three months.

Moreover, on a work day-adjusted, year-on-year basis, industrial output rose 3.2% in December following a 1.4% rise in November, in tentative signs of recovery.

In 2025 as a whole, Italy's industrial output fell by 0.2%, following decreases of 4% and 2% respectively in 2024 and 2023, ISTAT said.

Earlier this month, a purchasing managers' survey showed Italian manufacturing contracted in January for a second month in a row, albeit at a marginally slower pace than in December.

Over the whole of 2025, the economy grew by 0.7% from the year earlier, when adjusted for the number of working days, ISTAT's flash estimate showed on January 30.

It will release on March 2 non-workday-adjusted growth data for last year, comparable with the government's 0.5% target.

Rome has set a growth target of 0.7% for this year.

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

Frequently Asked Questions

1What are consumer goods?

Consumer goods are products that are purchased by individuals for personal use, such as clothing, food, and electronics.

2What is economic growth?

Economic growth refers to the increase in the production of goods and services in an economy over a period, typically measured by GDP.

3What is a purchasing managers' survey?

A purchasing managers' survey is a monthly survey of purchasing managers in various sectors, providing insights into economic trends and business conditions.