Another drop for Italian industrial production. The September data showed a 0.4% decline, a better figure than the quarterly average, which stood at -0.6% from the previous period, but still negative. On the one hand, the drop in energy prices still weighs heavily, but two serious industrial crises are ongoing in the country. Luxury and Automotivewhich is slowing the Italian economy.
Manufacturing of transportation equipment fell in September 15.4% Mainly due to the crisis in the automotive sector after the energy transition. Textiles also lack double digits, –10.7%For the luxury crisis.
Italian industrial production continues to decline.
State Italian industrial production data released in September 2024. The Bureau of Statistics has one A decrease of 0.4 percent In September compared to August. A figure that confirms the decrease in this parameter which is now continuous from the first quarter of 2023. It follows that at the quarterly level as well, the figure is negative, with -0.6% compared to the second quarter.
On an annualized basis, the month of September confirms a decline of almost 4% in Italian industrial production over the past 12 months. An end that doesn’t exclude any sector, which is the most conspicuously lacking. Capital goods (-5.1%) and that Intermediates (-4%) including some of the sectors most affected by the recent industrial, automotive and luxury crises. However, consumer staples also fared poorly (-3.5%), while energy production limited losses (-1.6%).
Limited to individual sectors, some symptoms Development Preparation of Electrical equipment An increase of about 6 percent, which is by far the best nationally. It is followed by computer and electronic products, which find a positive moment (+1.9%) after a long period of crisis after the CoVID-19 pandemic. Even mining activity, while remaining marginal to our nation’s economy, grew by 1.8%.
Causes of the collapse: luxury and the car crisis
The reasons why our country is facing a difficult moment from the point of view of industrial production are mainly due to two industrial crises which have affected the main sectors of our economy: Automotive and luxury. In both cases, these difficulties are due to international issues and changes in the relevant reference markets that companies in our country do not seem to be able to face.
In the automotive sector, the stellantes crisis is hitting Italian plants hard. The multinational, which includes a large portion of the former Fiat Group’s brands, generates almost all of the volume and value in the sector in Italy, but it registered just 29,000 cars in September. 33% less than last year.. But it is the entire car market that is in crisis, above all due to rising costs associated with the transition to electric motors.
Luxury, on the other hand, is subject to international tension. For years, major Italian fashion brands have had their main markets in Russia and China. Today, however, both states’ relations with the West have soured and both economies have slowed down to the extent that exports have collapsed, with a direct impact on the industrial districts of our country.
