In August, Italian industrial production rose for the first time in four months, posting a record month-on-month increase. On a monthly basis, production jumped by 4.3% M/M, while only a slight increase (by 0.2% M/M) was expected. The previous figure was upwardly revised from -0.7% M/M to -0.3% M/M. The breakdown shows that strength was broad based as production of consumer (4.2% M/M), capital (4.0% M/M) and intermediate (2.7% M/M) goods rose sharply in August. Also energy production rose by 3.3% M/M. The sharp rebound in production is a welcome sign, but comes after three consecutive declines. Some believe that the volatility