Italy's Industrial Production Declines 0.4% in December Despite Q4 Growth
Italy's industrial production decreased by 0.4% month-on-month in December, following a 1.5% rise in November. Year-on-year, production increased by 3.2%. Key growth sectors included pharmaceuticals and electronics, while textiles and transport equipment experienced declines. A 0.7% carryover from 2025 into 2026 is expected to support average annual production growth above 1%. Future growth depends on Germany's infrastructure and defense investments, with risks linked to potential delays.
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Italy's industrial production fell by 0.4% month-on-month in December 2025, despite a 1.5% increase in November. Year-on-year, production rose 3.2%. Growth was driven by pharmaceuticals and electronics, while textiles, transport equipment, and chemicals reported declines.
The fourth quarter of 2025 saw a 0.9% increase in production from the previous quarter, contributing to a 0.3% GDP growth. A 0.7% carryover from 2025 is expected to help annual production growth exceed 1%. Continued growth is contingent on Germany's infrastructure and defense investments, with risks linked to potential delays.
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