Italy's industrial output growth slowed sharply in July, logging the weakest pace since February, official data revealed Friday.
Industrial production rose a working-day adjusted 4.8% year-on-year, following a revised 8.1% increase in June, the statistical office ISTAT said. Economists were looking for a higher growth figure of 5.7%.
June's growth was earlier reported at 8.2%. Output has been growing since February, after a declining trend in the past several months. On an unadjusted basis, industrial production increased 1.7% from the same month last year in July compared to 8% growth in June.
Month-on-month, industrial output edged up 0.1% in July, after a 0.5% rise in the previous month. It was also the smallest increase since February. Monthly increases has been registered since the beginning of the year.
During the first seven months of the year, industrial output rose 5.4% from a year ago. On an unadjusted basis, the increase was 5.3%.
Italy's manufacturing sector grew at the weakest pace since February due to slower growth in output and new orders as well as a resumption of job shedding, survey data from Markit Economics showed last week. The seasonally adjusted Markit/ADACI Purchasing Managers' Index dropped to 52.8 from 54.4 in July. A reading above 50 suggests expansion in the sector.
Confidence among Italian businesses increased for the second straight month in August on the back of improved assessment on internal and external demand as well as production, research institute ISAE said. The seasonally adjusted business sentiment index for the manufacturing sector increased to 100.5 in August from 98.3 in July. The index reading has returned to its May 2008 level, the think tank said.
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