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Italy's industrial production decreased by 0.4% month-on-month in December, following a 1.5% rise in November. Year-on-year, production increased by 3.2%. Key growth sectors included pharmaceuticals and electronics, while textiles and transport equipment experienced declines.

A 0.7% carryover from 2025 into 2026 is expected to support average annual production growth above 1%. Future growth depends on Germany's infrastructure and defense investments, with risks linked to potential delays.