Italian industrial output rose by 0.4% in July from the previous month, data showed on Wednesday, in a further sign of recovery for the long-struggling manufacturing sector.
A Reuters survey of 14 analysts had pointed to a 0.1% decrease.
The data was the second positive surprise in a row, after a 0.2% month-on-month rise in June compared to a forecast of a 0.1% fall.
The monthly economic growth in July extended to all major industry groups with the exception of energy, national statistics agency ISTAT said.
On a work day-adjusted year-on-year basis, industrial output was up by 0.9% in July, following a 0.7% decrease in June, revised from an originally reported 0.9% fall.
Some hope of recovery was also offered earlier this month by a PMI survey, showing that the Italian manufacturing sector returned to growth in August after 16 months of contraction.
Despite rising industrial output, outlook for growth at the euro zone's third-largest economy is still cloudy after GDP shrank by 0.1% in the second quarter from the previous three months.
The government in April halved its economic growth estimate for 2025 to 0.6% amid mounting uncertainty due to U.S. trade tariffs.
Economy Minister Giancarlo Giorgetti on Sunday said that the economy will likely grow by 0.6% this year, in line with the government's target.
