Italian industrial output slides in September - data

Italy's industrial production dipped by a greater-than-expected 5.3 per cent in September, national data showed yesterday, in a new sign of weakness in the country's recession-hit economy.

August had seen a rebound of 5.8 per cent over July, according to seasonally adjusted figures, revised downward from an initial estimate of seven per cent.

The measure plunged 15.7 per cent in September from 12 months earlier, the national statistical agency Istat said in a communique.

Both figures were worse than economists' predictions of a monthly drop of 3.3 per cent and a year-on-year decrease of 11.8 per cent.

Last month Istat reported that industrial orders plunged deeper in August, falling more than a quarter compared to a year ago.

Orders to industry fell by 27.5 per cent from August 2008 and fell back sharply by 8.6 per cent compared to July 2009.

It had logged 12-month falls of 23.2 per cent in July and 22.7 per cent in June. The seasonally adjusted month-on-month figure was a shock reversal after slight gains in previous months.

The new output figures showed the sectors hit hardest in September compared with August included metallurgy at 13.3 per cent, transport goods including automobiles at 9.5 per cent and textiles, which shrank 9.3 per cent.

Overall for the third quarter, production was up four per cent from the second quarter, Istat said.

The agency was to publish gross domestic product figures for the third quarter on Friday, with analysts predicting they will show a return to growth.

Italy's Central Bank has cautioned that any recovery would be fragile.