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Italy's industrial production declines at the fastest pace ever

Italy's industrial production declines at the fastest pace ever

Italy's industrial production fell more than analysts had expected in March, hitting an all-time low, as the Covid-19 restrictions negatively affected most businesses.

Data released by the Italian Statistical Office showed on Monday showed that industrial production fell by 28.4 percent during the month of March, compared to a decline of 1.2 percent in February. Analysts had expected a 20 percent drop.

The agency said that the annual decline rate, which reached 29.3 percent, is considered the highest since data began in 1990.

The slide in industrial production comes as production of consumer, investment, intermediate and energy products declined in March by between 10 percent and 40 percent compared to the previous month.

The statement attributed the negative March results to restrictions on the containment of coronavirus in Europe, which closed all factories except those deemed necessary for the supply chain.

Italy was one of the European countries most affected by the Corona virus, and as of Sunday, the total infections in it were around 220,000, with death toll more than 30,000.

Italy was the first European country to impose closure measures to contain the Corona virus outbreak on March 10.

Closing procedures were eased on May 4, but most shops remain closed, and tourism is still suspended.

The Italian government is scheduled to announce later today a new stimulus package of 55 billion euros to reinvigorate the corona-hit economy.

The EUR/USD pair traded lower at 1.0819, while the lowest level recorded during the session was at 1.0809.

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