Italian Industrial Output Inches Up

Italian Industrial Output Inches Up

Output inched up by 0.1% from the previous months, after falling by 0.3% in April, 0.8% in March and 0.8% in February.

ROME -- Italy's industrial production ended three months of decline in May, official data showed on Wednesday, but the news will offer little cheer after a sovereign rating downgrade and a growth forecast cut.

Output inched up by 0.1% from the previous months, after falling by 0.3% in April, 0.8% in March and 0.8% in February.

Calculated on a 12-month comparison, however, industrial production was still down by 4.2% -- the 21st consecutive negative result.

The best performing sectors over the 12-month period were computers and electronic goods, pharmaceuticals and the food and drinks industry, while energy products and consumer goods were sharply down.

Ratings agency Standard and Poor's on Tuesday downgraded Italy's rating by one notch to BBB on worries over its ability to resist the effects of a two-year recession and warned the public deficit could go higher than expected.

The International Monetary Fund last week cut its economic forecast for Italy, saying it expected the economy to shrink by 1.8% this year.

For 2014, however, the IMF increased its forecast to 0.7% growth.

Copyright Agence France-Presse, 2013

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