Industrial production down 0.3% in May, up 1.1% year-on-year

Industrial production in May fell by 0.3 per cent month-on-month and rose by 1.1 per cent year-on-year. This is according to a statement from Istat, which explains in particular that “in May, the seasonally adjusted industrial production index is estimated to have fallen by 0.3 per cent compared with April.”

On average for the period March–May, production levels rose by 0.9 per cent compared with the previous three months. The seasonally adjusted monthly index rose on a month-on-month basis only for energy (+4.6%), whilst it fell for capital goods (-0.1%), consumer goods (-0.5%) and intermediate goods (-0.8%). Adjusted for calendar effects, in May 2026 the overall index rose by 1.1% year-on-year (there were 20 working days compared with 21 in May 2025). Capital goods grew significantly (+5.0%), whilst energy (+1.9%) and intermediate goods (+0.8%) grew at a slower rate; consumer goods, on the other hand, fell (-3.2%).”

The sectors of economic activity recording the highest year-on-year increases, explains Istat, are the manufacture of transport equipment (+11.6 per cent), the production of basic pharmaceutical products and pharmaceutical preparations (+3.5 per cent) and the manufacture of chemical products (+3.3 per cent). The sharpest declines were recorded in the textile, clothing, leather and accessories (-6.6%), in other manufacturing industries, repair and installation of machinery and equipment (-3.8%) and in the manufacture of electrical equipment and non-electrical domestic appliances (-2.6%).

Istat comments: “In May, following three months of month-on-month increases, the seasonally adjusted industrial production index fell compared with April. The decline was widespread across the main industrial sectors, with the exception of energy. However, the trend over the last three months on average was positive. On an annual basis, the calendar-adjusted index is up. With the exception of consumer goods, all the main sectors of activity showed increases compared with the previous year”.

The outlook for the global economy remains uncertain, although the geopolitical situation has shown a slight improvement compared with the severe tensions at the start of the year. Despite the recent fall in energy costs, the systemic effects of the conflict between the US and Iran are still weighing on global inflation. In the first three months of 2026, Italian GDP grew by 0.3 per cent quarter-on-quarter, compared with a 0.2 per cent decline in the eurozone. Growth for 2026 stands at 0.6 per cent. This is according to the Report on the Performance of the Italian Economy published by Istat.