FX.co ★ Italy Industrial Output Falls 0.3% in May

Italy’s industrial production fell by 0.3% month-on-month in May 2026, a slightly sharper decline than the 0.2% drop expected by markets, and reversing a revised 0.4% increase in April. This was the first contraction since January.

The downturn was driven by weaker output in capital goods (-0.1% vs +1.0% in April) and intermediate goods (-0.8% vs +0.8%), while the decline in consumer goods deepened (-0.5% vs -0.1%). In contrast, energy production rebounded strongly, rising 4.6% after a 0.2% fall in the previous month.

On an annual basis, industrial output grew by 1.1%, unchanged from the revised April reading. Year-on-year growth slowed for capital goods (5.0% vs 6.4%) and intermediate goods (0.8% vs 1.8%), while energy output returned to positive territory (1.9% vs -2.7%).

By industry, the sharpest declines were recorded in textiles, clothing, leather, and accessories (-6.6%); in other manufacturing, repair, and installation of machinery and equipment (-3.8%); and in the manufacture of electrical and non-electrical household appliances (-2.6%).