Industrial output in Italy turned out weaker than forecast in December, declining 1.0% compared to the previous month, following a substantial upwardly revised 2.1% in November.

This is according to data published on Wednesday by the Italian National Institute of Statistics, ISTAT.

However, a Reuters poll of 19 analysts indicated a 0.7% monthly fall in December. The data from November was revised up from the original figure of a 1.9% increase.

ISTAT went on to say that on a work-day adjusted year-on-year basis, industrial output edged up 4.4% in December, a slowdown from a 6.6% annual rise the month before, Reuters reports.

In the three months to December last year, output moved up 0.5% compared to the prior quarter, according to the Italian National Institute of Statistics, decelerating from a 1.1% gain in quarter three.

Taking into account the whole of 2021, industrial output rose 11.8% compared to the previous year, regaining all of 2020’s 11.4% decline when the economy was battered by pandemic-fuelled lockdowns.

In December, there were month-on-month falls in the production of consumer goods, intermediate goods and investment goods, ISTAT went on to add, whilst there was a slight increase in the output of energy products.

Furthermore, Italy’s economy expanded by a preliminary 6.5% last year, as per data published last week, following a record 8.9% contraction in 2020.

For the current year, Mario Draghi's government officially predicts a rise in GDP of 4.7% the Reuters report goes on to add, yet elevated energy prices and a recent spike in Covid case numbers and fatalities have obscured the outlook.

Last month, business and consumer confidence declined in Italy, with the majority of analysts and think tanks now deeming the government’s growth forecast for the year as optimistic.