FX.co ★ Italy Industrial Output Falls More than Expected

In August 2025, Italy experienced a significant decline in industrial production, which fell by 2.4% compared to the previous month. This drop surpassed market expectations of a modest 0.4% decrease and contrasted with a 0.4% increase recorded in July. It marks the steepest decline since December 2024, attributed to reduced output across all major sectors: energy (-0.6%), consumer goods (-1.2%), intermediate goods (-1.2%), and capital goods (-2.2%). On an annual basis, industrial production fell by 2.7% in August, defying market predictions of a 0.5% increase and after a 0.9% rise in the previous month. The most substantial annual decline was noted in the supply of electricity, gas, steam, and air, which plummeted by 13.5%.