10 Jul 2019
Italian industrial production had a boost in May, improving from a less productive April.
The industrial production in Italy increased by 0.9% as the working days adjusted measure declined by 0.7%. Both investment goods and consumer goods incremented by 1.9% and 0.9% respectively, whereas energy production declined by 2.1%. The data issued by Istat highlighted that sectors that did well in 2018 had did not continue with the same pace in the first 4 months of 2019; energy production increased by 2.4% and food and tobacco by 2.3% year-on-year. Manufacturing also rose by 1.7% YoY.
On the other hand, petroleum coke and refining declined by 6.3% YoY, transport equipment down by 3.3% YoY, metal products by 3% and pharmaceuticals by 2.6% YoY.
It could be assumed that Liberation Day on the 25th of April influenced the industrial production last month. Moreover, the extending of the ‘super-depreciation’ onto the ‘pro-growth’ mandate could be vital in the second half of the year. The ‘super-depreciation’ facilitates enterprises’ investments, allowing them more amortisation, so to help them generate the capital goods.