| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Month over Month | 0.1% | 0.0% | -0.4% | -0.3% |
| Year over Year | -3.6% | -4.0% | -3.9% |
Highlights
Industrial production was unchanged on the month in October, slightly undershooting the consensus but following a small upward revision to September. Capital goods and intermediate fell 0.2 percent and 1.0 percent respectively but declines here were offset by increases in energy (1.7 percent) and consumer goods (1.5 percent).
Year-over-year, output was down 3.6 percent, largely due to intermediate goods and capital goods which posted falls of 5.2 percent and 4.4 percent respectively. Energy was also down 0.8 percent.
In sum, goods production remains weak - indeed, output contracted 0.7 percent over the last three months and has not expanded since June. Still, today's report lifts the Italian RPI to 7 and the RPI-P to minus 10, the mix showing overall real economic activity performing in line with market expectations but inflation still undershooting.
Year-over-year, output was down 3.6 percent, largely due to intermediate goods and capital goods which posted falls of 5.2 percent and 4.4 percent respectively. Energy was also down 0.8 percent.
In sum, goods production remains weak - indeed, output contracted 0.7 percent over the last three months and has not expanded since June. Still, today's report lifts the Italian RPI to 7 and the RPI-P to minus 10, the mix showing overall real economic activity performing in line with market expectations but inflation still undershooting.
Market Consensus Before Announcement
Goods production is expected to rise just 0.1 percent on the month having fallen 0.4 percent in September.
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.
