Italian industrial production slips in April

Italian industrial output fell more sharply than expected in April, led by a drop in energy production.

However, output of capital goods, a key lead indicator of investment trends, held up.

In seasonally adjusted terms, total output fell by 1.2% month-on-month in April, according to ISTAT, outpacing economists' forecasts for a drop of 0.7%.

Output declined across almost all categories versus March, led by a 4.8% drop in that of energy, alongside falls of 1.1% in that of intermediate goods and a 1.3% decrease in the output of consumer goods.

Production of capital goods on the other hand increased by 0.7%.

By sectors, Mining output jumped by 5.7% on the month, while that from Manufacturing was 0.6% lower and that from Energy by 6.1%.

In comparison to a year ago and in calendar-adjusted terms, total output grew 1.9%.

Barclays Research's Fabio Fois said the data was consistent with a slowdown in the rate of growth of Italian gross domestic product from the 0.3% quarter-on-quarter clip observed during the first three months of 2018 to 0.2% in the second quarter.

"Restocking was very strong in Q1 - in Q2 we expect it to decline but risks are that the correction could be stronger than we expect."