July Industrial production data, released earlier today by Istat, turned out softer than expected. The seasonally-adjusted measure contracted by 0.7% month-on-month (-0.2% MoM in June) and the working day-adjusted version was also down 0.7% year-on-year, posting the fifth contraction in a row. The monthly contraction was broad based, with all the big aggregates except energy in negative territory, and was particularly marked (-1.6% MoM) in the key investment goods segment. Looking ahead, the combined reading of business confidence and manufacturing orders data does not validate hopes for a short-term ... (full story)