Italy: industrial production increases in June, but decreases on an annual basis
Istat has released the data relating to industrial production in Italy and the data would also be good, if it weren't then broken down and analyzed in depth.
Italy's industrial production rose 0.5% month-over-month in June 2023, the second consecutive increase, beating market forecasts for a 0.3% decline.
The figure follows an upwardly revised 1.7% increase in May. Production slowed down for intermediate goods ( +0.4% compared to +1.2% in May) and contracted for consumer goods (-0.1% compared to +1.1%). Conversely, it increased for energy (+0.3% vs +0.1%) and capital goods (+1.5% vs +1.4%).
On a year-over-year basis, industrial production fell 0.8% in June, improving from a downwardly revised 3.5% decline in May. On average in the second quarter, the level of production decreased by 1.2% compared to the previous three months.
Here is the last chart
So we have an even unexpected increase in activity in June versus May, but a decrease versus June last year. Above all, this increase has not spilled over into consumer goods, indicating that final household demand remains very weak and consistent with a situation of recession and declining real incomes. The increase is linked to energy, above all because lower gas and oil prices have allowed for greater generation, together with hydroelectric generation which this year appears to be very effective.
So not bad news, but not good news either, and which in any case remains consistent with a gray general economic picture
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The article Italy: industrial production increases in June, but falls on an annual basis comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/italia-aumenta-a-giugno-la-produzione-industriale-ma-cala-su-base-annua/ on Fri, 04 Aug 2023 13:14:31 +0000.