Industrial turnover and new orders rebounds strongly in ItalyOn July 17, 2020 by Thomas Belayneh
Encouraging figures out from Italy’s Istituto Nazionale di Statistica showed that the industrial turnover index grew 41.9% in May, while new orders increased 42.2%. This was the first time either of the indices tracking industrial production increased since January.
Breaking down the turnover index into home and abroad sales, domestic sales increased by 45.7%, while export sales rose by a smaller 35.2%. New orders, on the other hand, had larger disparity between the two markets with domestic new orders rising 55.9%, while new export orders rose 26.2%.
The strong rises observed in both indices are welcome news in light of the unprecedented declines witnessed in March and April. In March, industrial turnover declined 11% and new orders fell 26%. In April, industrial turnover decreased a further 35% and new orders also fell, declining by 32%.
Although Italy’s national statistics authority doesn’t give the breakdown of the figures by sector, this remarkable rebound in activity is likely to have been driven in no small part by steel mills, as they reopened towards the end of April, albeit operating at around half of their capacity.
Italy is Europe’s second largest steel producer (second to Germany) and eleventh-largest in the world, producing 23.2 million tonnes in 2019 according the World Steel Association. The sector is weighted 14.01% in the index, which is only just shy of the largest weight – food, beverage and tobacco production weight at 14.34%.
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