Italy industrial output falls the most in nearly three years

Industrial production in Italy fell 3.1% month-over-month in December 2024, a much steeper decline than market expectations of a 0.2% decrease, following a 0.3% increase in November.

Italy industrial output falls the most in nearly three years

This marked the sharpest contraction in industrial output since January 2022, highlighting ongoing economic challenges. The downturn was broad-based, with declines observed across key sectors: consumer goods output shrank by 3.3% (compared to a 0.7% rise in November), intermediate goods dropped 3.6% (vs. a 0.3% increase previously), and capital goods contracted by 3.3% (after a 0.6% fall in November).

Energy production growth slows

Additionally, energy production growth slowed to 0.9% from 1.1% in the previous month. On a quarterly basis, industrial output fell by 1.2% in Q4, extending the 0.7% decline recorded in Q3, signaling a weakening industrial sector amid broader economic uncertainties.