Italy’s industrial production seems to be showing signs of stabilisation, with a 0.5% month-on-month growth in June. This marks the same rate of expansion seen in May, following four consecutive negative readings earlier in the year. The production of capital goods saw a rebound, while consumer goods and energy products experienced a decline. On a yearly basis, production was down 2.6%, marking the 17th consecutive negative figure. The output of chemicals and food, beverages, and tobacco showed annual growth, while transport equipment saw a 13% decline. Paolo Pizzoli, senior economist at ING, noted that the data indicates a stabilization rather than a full rebound for Italian industrial production. Italy’s GDP for the second quarter of the year showed a modest rise of 0.2%, compared to the 0.3% growth in the first quarter. The pandemic caused a sudden drop in production in Italy, followed by a rebound in mid-2020 and another rise in 2021. Industrial production is an important economic indicator and strong data suggests high demand and a financially-robust country. It is unclear when a more noticeable improvement in production may occur, with Pizzoli suggesting the end of 2024 as a potential timeline, depending on improvements in demand.
Source
Photo credit www.euronews.com
