Italian industrial production slows down in March

Italian industrial production grew more slowly last month, weighed down by a sharp fall in energy output.

Industrial production fell by 0.6% month-on-month, but was 1.2% higher versus a year ago, according to the country’s statistics office, ISTAT.

Economists had anticipated a fall of 0.7% month-on-month and a rise of 1.6% year-on-year.

In comparison with the month before, output of consumer goods was lower by 0.5% as the output of non-durable consumer goods sagged by 0.7%.

Output of durable goods on the other hand was up by 1.2%.

Production of intermediate and capital goods was up by 0.2% month-on-month in both cases.

Energy output on the other hand fell by 2.9% from February’s level.

Rome raises public deficit target for 2017

On Friday evening, the Italian government approved the so-called Economic and Financial Document (DEF), with Rome lowering its forecast for the rate of growth in the country’s gross domestic product in 2016 from 1.6% to 1.2%.

In parallel, the public sector deficit target for 2016 was cut from 2.6% of GDP to 2.3%.

To take note of, in a bid to prop up the economy Rome decided to lift its deficit target for 2017 from 1.1% of GDP to 1.8%, “meaning that it will ask the EU for further budget flexibility,” UniCredit Research said in a note sent to clients.