ROME: Italian industrial output fell a bigger-than-expected 1.0 per cent in November, suggesting the economy remains deep in recession as the country braces for a national election next month.
The latest piece of bleak data will provide further ammunition to critics of outgoing Prime Minister Mario Monti, who is bidding for a second term in office at the Feb. 24-25 ballot.
The output drop followed October's 1.1 per cent fall and marked the third consecutive steep monthly decline. Adjusted for the number of days worked, output was down 7.6 per cent from the same month of the year before, national statistics bureau ISTAT said.
The data was weaker than all forecasts in a Reuters survey of 19 analysts, which projected a flat monthly reading.
Fabio Fois of Barclays Capital forecast that gross domestic product fell 0.6 per cent in the fourth quarter and said this estimate carried a downside risk after Monday's industrial output data.
Paolo Mameli of Intesa Sanpaolo offered the same forecast for fourth-quarter GDP and said the output data was particularly worrying because of "the sharp fall in investment and intermediate goods, which had held up until August thanks to exports."
The Italian economy, the most sluggish in the euro zone for more than a decade, posted five consecutive contractions up to the third quarter of last year and is not expected to post any growth before the second half of 2013.
After two deep recessions since 2008, Italy's industrial output is now about 25 per cent lower than at its peak five years ago.
Monti took over as Prime Minister from a discredited Silvio Berlusconi in November 2011 as Italian borrowing costs surged.
He has taken decisive action on public finances and has helped calm financial markets but is criticised by opponents on both the left and the right for focusing too much on austerity policies which have hurt the economy and pushed up unemployment.
Some six weeks before the election Monti's centrist alliance is lagging both the centre-right led by Berlusconi and Pier Luigi Bersani's centre left, which has a commanding lead.
Monti's technocrat government estimates gross domestic product fell 2.4 per cent in 2012 and will shrink by 0.2 per cent this year.
Most independent forecasters are more downbeat on 2013, with employers lobby Confindustria forecasting a 1.1 per cent contraction and the Organisation for Economic Cooperation and Development forecasting a 1.0 per cent fall.
indiatimes.com
The latest piece of bleak data will provide further ammunition to critics of outgoing Prime Minister Mario Monti, who is bidding for a second term in office at the Feb. 24-25 ballot.
The output drop followed October's 1.1 per cent fall and marked the third consecutive steep monthly decline. Adjusted for the number of days worked, output was down 7.6 per cent from the same month of the year before, national statistics bureau ISTAT said.
The data was weaker than all forecasts in a Reuters survey of 19 analysts, which projected a flat monthly reading.
Fabio Fois of Barclays Capital forecast that gross domestic product fell 0.6 per cent in the fourth quarter and said this estimate carried a downside risk after Monday's industrial output data.
Paolo Mameli of Intesa Sanpaolo offered the same forecast for fourth-quarter GDP and said the output data was particularly worrying because of "the sharp fall in investment and intermediate goods, which had held up until August thanks to exports."
The Italian economy, the most sluggish in the euro zone for more than a decade, posted five consecutive contractions up to the third quarter of last year and is not expected to post any growth before the second half of 2013.
After two deep recessions since 2008, Italy's industrial output is now about 25 per cent lower than at its peak five years ago.
Monti took over as Prime Minister from a discredited Silvio Berlusconi in November 2011 as Italian borrowing costs surged.
He has taken decisive action on public finances and has helped calm financial markets but is criticised by opponents on both the left and the right for focusing too much on austerity policies which have hurt the economy and pushed up unemployment.
Some six weeks before the election Monti's centrist alliance is lagging both the centre-right led by Berlusconi and Pier Luigi Bersani's centre left, which has a commanding lead.
Monti's technocrat government estimates gross domestic product fell 2.4 per cent in 2012 and will shrink by 0.2 per cent this year.
Most independent forecasters are more downbeat on 2013, with employers lobby Confindustria forecasting a 1.1 per cent contraction and the Organisation for Economic Cooperation and Development forecasting a 1.0 per cent fall.
indiatimes.com
No comments:
Post a Comment