Italy industrial output ends three-month positive streak with May fall

ROME - Italian industrial output fell by more than expected in May, with a 0.3% month-on-month drop, official data showed on Friday, in a renewed sign of weakness for manufacturing in the euro zone's third-largest economy.

A Reuters survey of nine analysts had pointed to a 0.2% month-on-month decline in May, after three consecutive increases.

In the March-to-May period, however, output was up 0.9% compared to the previous three months, national statistics agency ISTAT said.

ISTAT slightly revised down April's month-on-month data to show a 0.4% rise, from an originally reported 0.5% increase.

On a work day-adjusted year-on-year basis, industrial output rose 1.1% in May versus a forecast of a 1.3% increase. It followed a 1.1% rise in April, downwardly revised from an originally reported 1.3% increase.

Looking ahead, the outlook is clouded by continuing turmoil in the Middle East.

The government in April cut its economic growth outlook to 0.6% for this year and next, reflecting the increase in energy costs and geopolitical tensions, from previous targets of 0.7% and 0.8% respectively.

In the first quarter of 2026 Italian gross domestic product increased by 0.3% quarter-on-quarter, the same growth rate as in the fourth quarter of last year.

In 2025 Italy grew by 0.5%, a third straight year of sub-1% growth.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Alvise Armellini)

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This story was originally published July 10, 2026 at 4:33 AM.