In July 2017 industrial production, also thanks to software for optimising the process and the 4.0 Industry Plan, grew 4.4% over the year. Istat notes that the trend index has been growing almost uninterrupted since August 2016, with the sole exception of January 2017. Capital goods are the driving force, having seen a sharp increase of 5.9% on the year, and “are the only sector well above the 2010 level.” Consumer goods (+ 4.1%), intermediate goods (+ 3.5%) and energy (+ 3.3%) are also up.
The motor vehicle sector has seen a sharp increase over the year, up by 9.1% in July. Also mining activities, machinery and the food industry are doing well. Among the sectors that are struggling are clothing and leather. Gentiloni: “The country is recovering, albeit with difficulty.” Calenda: “Resources for Business are creating jobs”.
“Among the sectors, the one that stands out is automotive production, which saw a rise of 9.1% in July 2017 compared to the same month in 2016.” In the first seven months of the year, the increase recorded by ISTAT was 10%. On a year by year basis, also mining activities (+ 8.4%), machinery and equipment manufacturing n.e.c. (+ 8.0%), the food industry, beverages and tobacco and transport manufacture (both +6,9%) are going well. Decreases have instead been recorded in the sectors of electrical and non-electrical household appliance manufacture, the manufacture of computers, electronics and optics, electro medical appliances, measuring devices and timepieces (both -0.6%) and the textile industries, clothing, leather and accessories (-0.5%).
Overall, the figures most certainly confirm a trend towards recovery of the Italian economy, Prime Minister, Paolo Gentiloni also points out: “The figures on today’s industrial production are figures that only one or two years ago, we would have considered impossible to achieve, the country is recovering albeit with difficulty.” Meanwhile, former Prime Minister, Matteo Renzi underlines this with a tweet: – “Industrial production + 4.4% (Istat).
The Minister of Economic Development, Carlo Calenda also underlines the continuing recovery, in addition to the need to support it with appropriate policies: “The annual growth of 4.4% in industrial production, indicated by Istat is a new positive sign of recovery in Italy’s manufacturing system. Notably, the Capital Goods index (+ 5.9%) and even more significant growth in the manufacturing of machinery and equipment (+ 8.0%) indicate that the Industrial National Plan 4.0 is working to encourage and support company investments. The figures confirm the efficiency of the decision to eliminate ineffective incentives by introducing automatic tax breaks which are not tied to a specific industry sector or scale. We should continue to work on supply polices, focusing resources to help companies that can produce and create jobs. ”
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Source: Repubblica.it 11/09/2017
With a growth of 0.1% in July 2017 compared to the previous month, and an increase of 4.4% compared to 2016, Italian industry output represents a new step forward in the latest Istat statistics and proves expectations of a negative result as indicated by a large number of analysts to be wrong. It “would have been an inconceivable figure even just one or two years ago,” commented Prime Minister, Paolo Gentiloni, during the inauguration of a school in Milan, in Cernusco sul Naviglio. “Our country is at last making a slow recovery, in fact even less slow than previously thought”, added the PM. Secretary of the Democratic Party, Matteo Renzi, rejoices on Twitter: “We’re bringing Italy out of the crisis. Salvini and Grillo want to take Italy out of the Euro.”
ISTAT. Another step forward with an increase of 0.1% in July on the previous month and 4.4% over the year
Recognition also comes from the City via the Financial Times: “Recovery is under way. Italy is on a roll right now,” reads the London daily newspaper. Production figures are “the latest in a series of better than expected economic data,” continues the article, “the strong growth is likely to continue,” and optimism “has also been reflected in increasing labour force participation’. Driving the industry are capital goods, up 5.9% in July over the year, which have greatly exceeded production levels in 2010, as explained by Istat. In particular, machinery and equipment stand at + 8%, a figure which the Minister of Development, Carlo Calenda, interprets as a sign that Italy’s Industry Plan 4.0 “is working in its stimulation and support of business investment.”
Machinery and automotive are the driving forces, Gentiloni: “Recovery is not as slow as we might have imagined”
Positive signs can be seen in all macro sectors and in twelve out of fifteen activity sectors, starting with mining (+ 8.4% on the year), machinery manufacture (+ 8%), the food industry and transport manufacture (both + 6.9%). Volatility in automobile manufacturing continues (+ 9.1%), while the manufacture of electrical and non-electrical domestic equipment and appliances is suffering, along with computer and electronics products (both at -0.6%) and the textile and clothing sector (-0,5%). With July’s result, there has been a sequence of rising trends in industrial production which has continued, with the exception of January 2017, from August of last year. According to Paolo Mameli, senior economist at the Intesa Sanpaolo bank, these figures “bode well” for the third quarter and “an upward review of the estimated growth in Italy’s GDP is expected to continue in the weeks to come.”
EURO AT ITS HIGHEST LEVEL. In the meantime, the Euro continues to race ahead, reaching a level that has not been seen since January 2015, before Draghi’s quantitative easing came into play. It is thanks to the risk of a Eurozone implosion having been averted, and estimated GDP growth standing at 2.2% this year (way above the US). But the ECB itself seems to have accepted that some appreciation is inevitable: if Draghi has set the Euro at 1.20 “a source of uncertainty that needs to be monitored’, those words are a far cry from 2014, when the Euro stood at 1.40, and the ECB President had spoken of “serious concern” regarding the exchange rate. Tapering, or gradual reduction of the QE programme, is now the next stage in Mario Draghi’s agenda.