Industrial production in Italy dropped unexpectedly in May in the biggest slump since November 2012, as output of all products except energy slipped, data from ISTAT showed Thursday.
On a seasonally adjusted basis, industrial output in the euro area’s third-largest economy declined by 1.2% month-over-month in May, trailing economists’ modest estimate of 0.1 percent growth.
While energy rose 0.8 percent, investment goods — a key driver of Italy’s subdued economic recovery — were down 1.7 percent. Consumer and intermediate goods dropped 1.5 percent.
“The surprising decline in industrial production in May throws doubt on the expected Italian recovery in the second quarter,” said Bloomberg’s Maxime Sbaihi and David Powell.
ISTAT’s latest report underscores the fact that Italy’s fragile economy continues to struggle to pull away from a deep two-year recession.