Italy’s industrial production fell 0.3% month-on-month in May 2026, slightly more than market expectations of a 0.2% decline, reversing a revised 0.4% increase in the previous month. This marked the first contraction since January, as output declined in capital goods (-0.1% vs 1.0% in April) and intermediate goods (-0.8% vs 0.8%), while the fall in consumer goods deepened (-0.5% vs -0.1%). In contrast, energy production rebounded sharply (4.6% vs -0.2%). On an annual basis, industrial output rose 1.1%, unchanged from the revised April reading. Growth eased for capital goods (5.0% vs 6.4%) and intermediate goods (0.8% vs 1.8%), while energy output returned to growth (1.9% vs -2.7%). By industry, the steepest declines were recorded in textiles, clothing, leather, and accessories (-6.6%), other manufacturing, repair and installation of machinery and equipment (-3.8%), and the manufacture of electrical and non-electrical household appliances (-2.6%).