Many analysts were expecting a shortfall in Italian industrial production this month, only the size of the decline was underestimated. Forecasts were for a slump of 0.2%, but the actual figure revealed a 0.6% decline.
Italy’s decline, however, may prove more ominous. Several economists are viewing the country’s industrial output report as a sign that debt contagion from Greece is spreading through the region, affecting demand and growth. Portugal’s recent downgrade and Italy’s worsening economic data are both symptoms of a larger problem in the euro zone.
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