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Industrial Prices Plummet in November: Istat Reveals a 12.6% Decline

In November 2023, the National Institute of Statistics (Istat) announced that Italian industrial production prices experienced a sharp decline, with a decrease of 0.9% monthly and 12.6% annually. This news confirms an intensification of the downturn compared to the -9.5% recorded in October.

Industrial Prices: Domestic Market Dynamics

On the domestic market, prices experienced a 1.2% decrease compared to the previous month and a 16.3% decrease annually, surpassing the -12.4% recorded the previous month. Excluding the energy sector, a 0.2% decrease was observed on a cyclical basis and a 1.6% decrease on a trend basis, compared to October’s -1.3%.

Industrial Prices: Trends in the Foreign Market

Internationally, prices recorded a 0.2% decrease on a monthly basis and a 1.2% decrease annually. In detail, the euro area saw a 0.1% decrease, while the non-euro area recorded a 0.4% decline. These data highlight a significant impact on exports, with substantial consequences for globally operating companies.

Manufacturing Sectors and Trends

Analyzing the period from September to November 2023, there was a 1.6% increase in industrial production prices compared to the previous quarter. This increase is primarily driven by a 2.4% growth in the domestic market, while the foreign market experiences a modest contraction of -0.3%.

Among manufacturing activities, sectors with the highest trend increases include basic pharmaceutical products and pharmaceutical preparations (+7.5% in the euro area), other manufacturing industries, repair and installation of machinery and equipment (+2.8% in the domestic market and +5.2% in the non-euro area), and computers, electronic, and optical products (+2.8% in the domestic market and +3.6% in the euro area).

Conversely, significant trend declines were observed in the chemical products, metallurgy and manufacture of metal products, and wood, paper, and printing industries across all markets.

Construction: Moderate Changes

In the construction sector, prices for “Residential and Non-Residential Buildings” remained unchanged on a cyclical basis in November, with a modest 0.2% growth on an annual basis. Prices for “Roads and Railways” experienced a slight increase (+0.1%) both monthly and annually, compared to the -0.5% trend change in October.

Industrial Prices: Impact on Financial Markets

The news of the industrial price crash has already had an impact on financial markets, with investors closely monitoring the implications for the national economy and growth prospects. According to Istat, the main cause of this downturn lies primarily in energy prices, highlighting the need for risk management strategies for businesses in the sector.

In conclusion, the collapse of industrial prices in November raises questions about future economic dynamics, with particular attention to energy resource management and adaptation strategies for sector businesses.

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