Unexpected recovery of the Italian industrial output

Italian national statistics office announced on Tuesday, July 4, that industrial production recovered by 0.8% in May after contraction of 1.9% in April. However, economists still expect economy to contract by 2.4% by the end of the year. Total industrial output declined by 6.9% in May for the year period. Mario Monti, Italian Prime Minister, started to implement austerity measures for the economy in December 2011. Last week he announced spending cuts of EUR26 billion over the next three years.