Italy’s industrial sector lost momentum in June, with production declining on a monthly basis after posting modest gains during the second quarter. Italy’s seasonally adjusted industrial production index fell by 1.0% in June compared with May, reversing part of the strength seen earlier in the quarter. Despite the monthly decline, industrial activity remained positive over the broader period, with second-quarter production rising 0.4% from the previous quarter.
On an annual basis, the picture was mixed. The calendar-adjusted industrial production index declined by 0.6% compared with June 2025, indicating a slight contraction in underlying manufacturing activity. The comparison takes into account the different number of working days, with June 2026 having 21 working days versus 20 in the same month a year earlier. Meanwhile, the unadjusted industrial production index increased by 2.4% year-over-year, supported in part by the more favorable calendar effect.
The data suggest that Italy’s industrial sector continues to struggle with uneven demand and a challenging economic backdrop, despite managing to post modest growth over the second quarter as a whole. The monthly decline in June highlights the fragility of the recovery and points to lingering weakness across parts of the manufacturing sector.
The data will not influence the ECB interest rate outlook as the central bank remains focused on inflation and the Middle East developments. Right now, the market is pricing a 73% probability of a rate hike at the September meeting.
This article was written by Giuseppe Dellamotta at investinglive.com.
