Italy industry output rises unexpectedly in June after May slump
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Employees work at a ceramics factory where the workers start their shifts before dawn to optimise sunlight and save energy, in Citta di Castello, Italy, August 30, 2022. REUTERS/Jennifer Lorenzini/File Photo
ROME (Reuters) -Italian industrial output rose unexpectedly in June by 0.2% from the month before, data showed on Wednesday, a tentative sign of recovery for the long-struggling manufacturing sector following a negative surprise in May.
A Reuters survey of seven analysts had pointed to a 0.1% decrease.
On a year-on-year basis, net of calendar effects, industrial output was down by 0.9% in June following a 1.0% decrease in May, national statistics agency ISTAT said.
June's month-on-month gain extended to all industrial sectors with the exception of consumer goods, ISTAT said.
The outlook for industrial output in the third largest EU economy, however, remained uncertain. According to data, output in the second quarter was up just 0.1% from the previous three months, and it fell 1.1% year-on-year in the first half of the year.
"Industrial production in Italy has likely reached a bottom," said Paolo Pizzoli, senior economist at ING. "However, a clear recovery is not imminent".
The Italian economy unexpectedly shrank by 0.1% in the second quarter compared to the first, preliminary data showed last week, possibly reflecting the early impact of a rise in U.S. tariffs and global trade uncertainty.
Prime Minister Giorgia Meloni's government in April halved its economic growth estimate for 2025 to 0.6%, broadly in line with the expectations of most analysts.
Tentative signs of stabilisation in the manufacturing sector, however, arrived last week from a survey of purchasing managers, despite a contraction for a 16th consecutive month in July.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, Editing by Cristina Carlevaro, Jane Merriman and Andrea Ricci)
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