Italy industrial production declines less than expected in September, augurs well for Q3 GDP

Italian industrial production declined by less than expected in September, data released by national statistics institute ISTAT showed on Thursday. The seasonally adjusted industrial production index decreased by 0.8 percent m/m in September compared to a 1.8 percent rise (revised from 1.7 percent) in August. Analysts had forecasted a 1.0 percent drop.

For the third quarter, industrial output posted a healthy gain, up 1.2 percent compared to a 0.2 percent fall in the second quarter. Industrial output shows a close correlation with gross domestic product (GDP) in Italy, and the third quarter reading augurs well for third quarter GDP data to be issued by ISTAT on Nov. 15.

The calendar adjusted industrial production index increased by 1.8 percent compared with September 2015 (calendar working days in September 2016 being the same as in September 2015); in the period January-September 2016 the percentage change was +1.1 compared with the same period of 2015.

Prime Minister Matteo Renzi's government expects full-year growth in 2016 of 0.8 percent, slightly higher than last year's 0.7 percent rate, which would still leave Italy in its customary position as one of the euro zone's most sluggish economies.