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Italy’s industrial output fell sharply in October, highlighting renewed pressure on the country’s manufacturing sector after a brief rebound in September.
Data released Wednesday showed industrial production declined 1.0% month-on-month, far worse than expectations for a 0.3% drop in a Reuters poll of analysts. The setback followed a 2.7% rise in September, which had merely offset an identical decline in August.
Broad-Based Declines Across Sectors
National statistics agency ISTAT reported that October’s weakness extended across all major industrial groupings except energy, weighing on the overall performance for the quarter.
Industrial output in the August–October period fell 0.9% compared with the previous three months.
On a workday-adjusted annual basis, production slipped 0.3%, missing forecasts for a 0.2% increase and underscoring sluggish momentum in the eurozone’s third-largest economy.
Growth Outlook Softens
ISTAT last week revised Italy’s 2025 GDP growth outlook to 0.5%, down from a prior 0.6% estimate. The government’s latest forecast also targets 0.5% growth, following a 0.7% expansion recorded in 2024.
In the third quarter of this year, GDP ticked up by just 0.1%, after a slight contraction in the second quarter.
Manufacturing PMI Offers a Glimmer of Hope
Despite the weak production data, there was a positive signal last week when the manufacturing Purchasing Managers’ Index (PMI) moved back into growth territory in November, hinting that activity may be stabilizing after months of contraction.
