Italy’s industrial production plunged by 2.4% month-on-month in August 2025, worse than market expectations of a 0.4% fall and reversing a 0.4% increase in July. This was the sharpest drop since December 2024, dragged by lower output across all major sectors, namely capital goods (-2.2%), consumer goods (-1.2%), intermediate goods (-1.2%), and energy (-0.6%). On a yearly basis, industrial production slumped by 2.7% in August, defying market forecasts of a 0.5% rise and following a 0.9% gain in the previous month. The biggest annual decline was seen in the supply of electricity, gas, steam, and air, which plunged by 13.5%.