Italy October industry output unexpectedly rises 0.1 percent month-on-month

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(Reuters) - Italian seasonally adjusted industrial output unexpectedly rose in October driven by an increase in the production of consumer goods, data showed on Monday.

 

 

Industrial output gained 0.1 percent in October after falling a revised 0.1 percent in September, higher than a median forecast for a 0.4 percent decline in a Reuters’ survey of seven analysts.

 

On a work-day adjusted year-on-year basis, output in October rose 1.0 percent, compared with a revised 1.4 percent gain in September, statistics office ISTAT said.

 

In the three months through October, output rose 0.8 percent from the previous three months, ISTAT said.

 

In October, industrial production gained on consumer goods, which rose 1.3 percent on the month. The production of energy, intermediate goods and investment goods all fell from the previous month.

 

Italy’s economy contracted in the third quarter for the first time in four years, and employers’ lobby Confindustria said the country may already be heading into recession.

 

The economy has been slowing steadily for the last 18 months. The production data point towards a possible stabilisation in the fourth quarter.

 

Italy’s populist government says its expansionary budget, which targets the deficit to rise to 2.4 percent of GDP in 2019 from 1.8 percent this year, is needed to boost growth.

 

But the European Commission says it breaks European Union public finance rules and is calling for Italy to change its budget to reduce deficit spending.

 

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