Italy's industrial production unexpectedly increased in August, data released by statistical office Istat showed Monday. The pace of growth was the fastest in seven months.
Seasonally adjusted industrial output rose 1.6% month-on-month in August following a revised 0.3% rise in July. The increase was in contrast to economists' expectations for a 0.3% decline.
Production of capital goods increased 4.8% from July, while that of intermediate goods and consumer goods climbed 3.1% and 0.5% respectively. Energy output fell 2.8%.
On annual basis, calendar adjusted industrial output rose 9.5% in August, faster than July's 5.6% increase. During the same time, the unadjusted industrial production was up 12.8%, much stronger than previous month's 2.5% rise.
"Although today's data could signal ongoing good resilience of external demand, we keep believing that some moderation of the industrial activity is in the pipeline," said Loredana Federico, an economist at UniCredit Research.
Justifying the economist's view, Italian business sentiment declined for the first time in 18 months in September. Moreover, the Markit/ADACI purchasing managers index indicated that Italy's manufacturing sector expanded at a slower pace in September.
The Italian economy expanded 0.5% sequentially in the second quarter following 0.4% rise in the first quarter. Economist's expects growth to moderate in the third quarter as the fiscal consolidation plan weigh on domestic demand.
Elsewhere on Monday, French statistical office Insee said industrial production recorded no growth in August following the 0.8% rise in July. Economists had forecast a 0.4% increase. Manufacturing also registered zero growth after increasing 1.2% in July. Analysts were expecting a 0.3% rise.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.