Italy industrial orders drop 1.1 percent in May on lower foreign and domestic demand

Nathan Andrada – Fourth Estate Cooperative Contributor

Rome, Italy (4E) – Industrial orders in Italy declined in May due to falling demand from foreign and domestic buyers, a sign that the economic recovery in the euro area’s third-largest economy is still fragile.

Industrial orders fell 1.1 percent from April in seasonally adjusted terms, a reversal from the 3.6 percent rise in the prior month, according to data from national statistics institute Istat released Monday. On an unadjusted basis, orders fell 2.5 percent on the year, the report showed.

The monthly decline was driven by a 4.5 percent drop in foreign orders while domestic demand fell 0.2 percent.

Orders are an indicator for future industrial output, a crucial data for Italy, which has the second-biggest manufacturing sector in Europe.

On a seasonally adjusted basis, industrial sales dropped 1.0 percent in May from the previous month, with a 0.6 percent fall in the domestic market, according to Istat. Industrial sales rose 0.1 percent in May from the year-earlier month in workday-adjusted terms, boosted by a rebound in automobile production and sales, Istat said.

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