ROME, May 12 (Reuters) - Italian industrial output rose by 0.7% in March compared to the previous month, data showed on Tuesday, offering some hope to the country's long-struggling manufacturing sector, although output in the first quarter still contracted slightly from the previous three months.
The data shows some initial resilience from Italian industry in the face of surging energy costs triggered by the US/Israel strikes on Iran which began on Feb. 28.
A Reuters survey of 14 analysts had pointed
to a 0.2% month-on-month increase in March, following a 0.2% rise in February.
Despite these gains, in the January-to-March period output in the euro zone's third-largest economy was still down 0.2% compared to the previous three months, national statistics agency ISTAT reported.
On a work day-adjusted year-on-year basis, industrial output was up 1.5% in March versus a forecast of a 0.3% increase, following a 0.4% rise in February.
The outlook for Italy's economy remains clouded by the turmoil in the Middle East.
Giorgia Meloni's government last month cut its economic growth outlook to 0.6% for this year and next, reflecting the increase in energy costs and geopolitical tensions, from previous targets of 0.7% and 0.8% respectively.
In 2025 Italy grew by 0.5%.
In the first quarter of 2026 Italian gross domestic product increased by 0.2% quarter-on-quarter, following a 0.3% expansion in the previous three months.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
