Italian July industrial production points to upside risks for GDP

Italian industrial production edged higher in July, contrary to forecasts, on the back of higher output of capital goods.

Total output was 0.1% higher on the month, according to ISTAT, ahead of economists' projections for a fall of 0.5% on the month.

Versus a year earlier, production stood 4.4% higher.

In comparison to the month before, output of consumer goods was up by 0.5% and that of intermediate goods by 0.3%, while energy production declined by 3.6%.

Output of capital goods on the other hand jumped by 1.6% versus June.

Commenting on Monday's release, Fabio Fois at Barclays Research said: "Against the backdrop of ongoing solid manufacturing prints and improving business sentiment across sectors, including construction, we attach up to 0.25pp upside risks to our current 0.2% q/q growth forecast for Q3, as also indicated by our GDP indicator."