FX.co ★ Italy Industrial Output Rebounds More than Expected

Italy’s industrial production rebounded by 1.2% month-on-month in September 2026, outperforming market expectations of a 0.7% rise and reversing the 1.2% decline recorded in August. The recovery was driven primarily by capital goods, which increased by 1.3%, and intermediate goods, up 1.2%, while output of consumer goods and energy fell by 0.2% and 1.4%, respectively.

On an annual basis, industrial production edged down by 0.1%. Energy recorded the strongest year-on-year growth, rising 4.7%, followed by capital goods with a 2.1% increase. In contrast, intermediate goods and consumer goods declined by 1.4% and 3.0%, respectively.

At the sector level, transport equipment manufacturing posted a solid 7.3% gain, and electricity and gas supply rose by 5.8%. Chemical production, however, registered the sharpest contraction, dropping 8.3%, underscoring persistent weaknesses in parts of Italian industry despite the rebound in September.

Over the third quarter as a whole, output was still 0.4% lower on average compared with the previous three months.