ROME, Oct 9 (Reuters) - Italian industrial output unexpectedly dropped 1.3% in August compared to July, according to data from the national statistics bureau ISTAT, which follows a 0.6% increase in the previous month. This decline is more significant than anticipated, raising concerns about the economic outlook for Italy, the euro zone's third-largest economy.
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A Reuters survey of 11 analysts had forecast a stable month-on-month reading for August. ISTAT's three-month rolling average indicates a 1.1% decrease in industrial output for the June-August period compared to March-May. Additionally, the data for July was revised down slightly from an initially reported increase of 0.7%.
On a year-on-year basis, adjusted for working days, output was flat in August after a 0.1% decline in July. Industrial output can be prone to fluctuations in August, a month when many factories traditionally close for summer break.
Despite these setbacks, the Italian economy outperformed many expectations in the first half of 2023, with GDP growing by 0.3% in the first quarter and 0.2% in the second. Last week, the government led by Giorgia Meloni revised its GDP growth forecast for 2026 to 1%, up from a previous estimate of 0.6% made in April. The economy grew by 0.5% in 2025 but has not surpassed 1% in the past three years, even with substantial COVID-19 recovery funds from the European Union.
(Reporting by Antonella Cinelli; graphic by Stefano Bernabei; editing by Gavin Jones)