Italy’s production appears to be stabilising although year-on-year data is still in the doldrums.
ADVERTISEMENTIndustrial production in Italy grew by 0.5% month-on-month in June on a seasonally-adjusted basis.
That's the same rate of expansion seen in May and comes as a cautiously positive sign after the year began with four consecutive negative readings.
Month-on-month data showed that output only rebounded for capital goods.
This refers to assets, such as machinery, used by companies to create other products and services.
Production on a monthly basis nonetheless fell for consumer goods and energy products, dropping by 0.3% and 1.4% respectively.
The output of intermediate goods stayed stable.
This term describes unfinished components that become part of another completed product.
On a yearly basis, production in June was down 2.6%, the 17th consecutive negative figure.
The production of chemicals, and the output of food, beverages and tobacco showed an annual jump.
The creation of transport equipment, on the other hand, showed a 13% yearly decline.
Industrial production can be a significant indicator of a country's economic health as manufacturing success can boost employment.
Strong production data also suggests high demand, a sign of a financially-robust country.
Italy's GDP output for the second quarter of the year, announced earlier this week, showed a modest rise of 0.2%.
That’s compared to the 0.3% growth rate seen in the first quarter.
Commenting on Friday's production figures, Paolo Pizzoli, senior economist for Italy and Greece at ING, said that the "data seems to be pointing to a stabilisation rather than a full rebound for Italian industrial production".
ADVERTISEMENT"For a more noticeable improvement we might have to wait for the end of 2024, provided the demand angle improves," he added.
As was the case with other countries, Italy saw a sudden drop in production at the start of the pandemic, followed by a dramatic rebound in mid-2020, as lockdowns began to ease. This was followed by another year-on-year rise in 2021.
