| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Month over Month | -0.2% | 0.0% | 0.2% | 0.3% |
| Year over Year | -2.0% | -4.2% |
Highlights
Industrial production flatlined in September, yet the subdued performance actually exceeded expectations.
Output was unchanged in the final month of the quarter, bettering the consensus forecast of a 0.2 percent decline, following an upwardly revised 0.3 percent gain in August (originally reported as a 0.2 percent rise).
On a seasonally adjusted annual basis, production declined by 2.0 percent in the final month of the quarter, less steep than the unrevised 4.2 percent slump in August.
The annual decline came despite an 11.2 percent jump in transport equipment, while pharmaceutical products rose by 2.3 percent. However, textiles and clothing retreated by 10.9 percent, while output of wood and paper declined by 11.6 percent.
Over the third quarter, industrial production advanced by 0.2 percent, raising the prospect of an upward revision to later iterations of gross domestic product. Italian GDP stagnated in the third quarter, according to a preliminary estimate released last week, although that report contained little sectoral detail.
The latest data take the Italian RPI to minus 21, while RPI-P stands at minus 10.
Output was unchanged in the final month of the quarter, bettering the consensus forecast of a 0.2 percent decline, following an upwardly revised 0.3 percent gain in August (originally reported as a 0.2 percent rise).
On a seasonally adjusted annual basis, production declined by 2.0 percent in the final month of the quarter, less steep than the unrevised 4.2 percent slump in August.
The annual decline came despite an 11.2 percent jump in transport equipment, while pharmaceutical products rose by 2.3 percent. However, textiles and clothing retreated by 10.9 percent, while output of wood and paper declined by 11.6 percent.
Over the third quarter, industrial production advanced by 0.2 percent, raising the prospect of an upward revision to later iterations of gross domestic product. Italian GDP stagnated in the third quarter, according to a preliminary estimate released last week, although that report contained little sectoral detail.
The latest data take the Italian RPI to minus 21, while RPI-P stands at minus 10.
Market Consensus Before Announcement
Goods production is seen down 0.2 percent on the month, reversing August's gain.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
