FX.co ★ Italy Industrial Output Drops Further in June

Italy’s industrial production fell by 1% month-on-month in June 2026, following a 0.3% decline in May and defying market expectations of a 0.3% increase. The contraction was broad-based: output dropped further in capital goods (-2.1% vs -0.2% in May), intermediate goods (-0.9% vs -0.7%), and consumer goods (-0.7% vs -0.4%). Growth in energy production also slowed sharply to 0.8%, down from 4.4%.

On an annual basis, industrial output decreased by 0.6%, reversing an upwardly revised 1.2% increase in May and falling short of expectations for a 1% gain. Consumer goods (-3.2% vs -2.9%) and intermediate goods (-1.2% vs 0.8%) recorded declines, while growth in capital goods moderated markedly (0.6% vs 4.9%). Energy output, by contrast, continued to rise (1.7% vs 1.5%).

By industry, the steepest year-on-year contractions were registered in the manufacture of textiles, clothing, leather, and related accessories (-7.1%); in other manufacturing activities, including the repair and installation of machinery and equipment (-3.6%); and in machinery and equipment n.e.c. (-2.3%).