In December 2025, industrial production in Italy fell by 0.4% compared to November, according to data from the national statistical agency ISTAT. However, the figures for the fourth quarter showed positive dynamics, which may indicate a gradual recovery of the Italian industrial sector after a prolonged decline.
This is reported by Finway
Year-End Industry Change Dynamics
According to a survey of thirteen analysts, a production decline of 0.5% was expected in December following a 1.5% increase in November. The actual decrease was 0.4%. This was attributed to a reduction in the output of consumer goods and intermediate products, which was not offset by growth in the energy and investment goods sectors.
At the same time, in the fourth quarter of 2025, industrial production in the third-largest economy of the European Union increased by 0.9% compared to the previous three months. Year-on-year, adjusted for working days, December recorded a growth of 3.2% after a 1.4% increase in November, which is a positive signal for the industry.
Current Trends and Economic Outlook
“According to ISTAT, in 2025 overall industrial production in Italy fell by 0.2% after declines of 4% and 2% respectively in 2024 and 2023.”
Despite the overall annual contraction, the pace of decline in 2025 significantly slowed compared to previous years. Earlier in January 2026, a purchasing managers’ survey indicated that manufacturing activity in Italy had decreased for the second consecutive month, although less noticeably than in December.
Furthermore, Italy’s gross domestic product in the fourth quarter of 2025 grew by 0.3% compared to the previous quarter and by 0.8% year-on-year, exceeding analysts’ expectations. For the entire year of 2025, the country’s economy increased by 0.7% compared to the previous year, as confirmed by preliminary estimates from ISTAT as of the end of January.