Italy industry output jumps unexpectedly in April, getting Q2 off to strong start

By Gavin Jones

ROME, June 10 (Reuters) – Italian industrial output was much stronger than expected in April, rising 1.6% from the month before after a 0.2% gain in March and boosting growth prospects for the second quarter, data showed on Friday.

A Reuters survey of 14 analysts had pointed to a 1.1% drop in April.

The data marked the third consecutive monthly increase in industrial output, with March revised up from an originally reported flat reading.

On a work-day adjusted year-on-year basis, industry output the euro zone’s third largest economy was up 4.2% in April after a 3.2% rise in March, national statistics bureau ISTAT said.

In the February-to-April period it was up 2.0% compared with the three months to January.

April saw month-on-month rises for output of consumer goods, intermediate goods and energy products, ISTAT said, while investment goods were stable.

The Italian economy grew just 0.1% in the first quarter from the previous three months, ISTAT reported last month, hit by Covid restrictions at the start of the year and uncertainty and high raw material prices linked with the war in Ukraine.

In April Prime Minister Mario Draghi’s government cut its forecast for gross domestic product growth this year to 3.1% from a 4.7% projection made in the autumn.

The latest forecast remains above those of most independent bodies.

ISTAT gave the following details.

INDUSTRIAL PRODUCTION APRIL MARCH FEB

Mth/mth pct change (adjusted) 1.6 0.2r 4.0

Yr/yr pct change (adjusted) 4.2 3.2r 3.4

Yr/yr pct change (unadjusted) -2.8 4.0r 3.4

NOTE: BASE 2015=100.

(r) indicates revised figures.

ISTAT provided the following breakdown by broad product group in April: adjusted month-on-month percent change.

Consumer goods 1.6

Investment goods 0.0

Intermediate goods 2.0

Energy goods 1.4

((Gavin Jones, Rome newsroom, gavin.jones@reuters.com))

Keywords: ITALY ECONOMY/OUTPUT