Italian Industrial Production Rises 1.2% in September Despite Third-Quarter Contraction
Key Facts
Italy's seasonally adjusted industrial production index rose 1.2% in September from August, according to data published by the National Institute of Statistics, Istat, on 11 November 2026. The improvement followed a decline in output the previous month, returning industrial activity to monthly growth. The institute said the recovery was concentrated in capital and intermediate goods, which are linked to demand from the production system. However, the monthly increase did not prevent average output in the third quarter from falling compared with the second quarter. The overall index also remained lower year over year, putting September's reading in the context of a limited monthly recovery that does not dispel the weaker picture over the broader period.
On a quarterly basis, average industrial production fell 0.4% in the third quarter compared with the previous three months, according to Istat. This means September's gains followed weaker performance earlier in the quarter and were not enough to offset the decline over the period. August saw a fall in seasonally adjusted output before the index rebounded in September. The institute noted that the improvement was concentrated in categories linked to business demand and the production process, rather than across all components of industry. The monthly and quarterly comparisons show a divergence between a short-term trend that improved in September and a quarterly average that remained negative.
Capital goods led the monthly gains, rising 1.3% in September, followed by intermediate goods, up 1.2%, according to the institute's data. By contrast, consumer goods output fell 0.2%, while energy output declined 1.4%. This distribution reflects differences across production components: the strongest contributions came from categories linked to demand from the production system, while consumer-oriented goods and energy recorded declines. Istat had linked the monthly rebound to production demand for capital and intermediate goods. The improvement therefore did not extend to all categories, despite the overall index rising compared with August.
Year over year, the overall industrial production index fell 0.1% in September after calendar effects were excluded, according to Istat. The month had 22 working days, the same number as in September 2025. Among the sectors cited by the institute, the manufacture of transport equipment recorded the largest annual increase, at 7.3%. Electricity, gas, steam and air supply rose 5.8%, while the wood, paper and printing industry increased 2.2%. These gains stand out alongside the slight decline in the overall index, but were offset by falls in other industries.
Chemical products were the weakest among the sectors cited, with output falling 8.3% year over year in September. Textile, clothing, leather and accessories industries declined 4.5%, while mining activity fell 3.7%, according to Istat data. On the other hand, the manufacture of transport equipment rose 7.3%, electricity, gas, steam and air supply increased 5.8%, and the wood, paper and printing industry rose 2.2%. The divergence shows that the annual trend was not uniform across industrial activities. The institute's next release on industrial production is scheduled for 11 December 2026.