Industrial production in Italy declined by 0.7% month-on-month in May 2025, reversing a downwardly revised 0.9% gain in the previous month and missing market expectations for a flat reading. The decline was mainly driven by lower output of intermediate goods (-1.0%) and consumer goods (-1.3%), while energy output (+0.7%) rose and capital goods remained stable. On a yearly basis, industrial production dropped 0.9%, also missing market expectations for a 0.2% increase and reversing a revised 0.1% uptick in April - the first annual increase in over two years. Meanwhile, the average for the February - May period shows an increase of 0.6% in production compared to the previous three months.