Italy’s industrial production dropped 1% month-on-month in June 2026, following a 0.3% fall in May and missing market expectations for a 0.3% rise. The downturn was broad-based, with output falling further for capital goods (-2.1% vs -0.2% in May), intermediate goods (-0.9% vs -0.7%), and consumer goods (-0.7% vs -0.4%). Energy production growth also slowed sharply to 0.8% from 4.4%. Yearly, industrial output fell 0.6%, reversing an upwardly revised 1.2% rise in May and against expectations of a 1% gain. Consumer goods (-3.2% vs -2.9%) and intermediate goods (-1.2% vs 0.8%) posted declines, while growth in capital goods eased significantly (0.6% vs 4.9%). Energy output, meanwhile, increased further (1.7% vs 1.5%). By industry, the largest annual declines were reported in the manufacture of textiles, clothing, leather, and related accessories (-7.1%), other manufacturing activities, repair and installation of machinery and equipment (-3.6%), and machinery and equipment n.e.c. (-2.3%).