FILE PHOTO: A man works inside the baby products manufacturer Foppapedretti's factory in Grumello del Monte, near Bergamo, Italy, April 16, 2025 REUTERS/Massimo Pinca/File Photo

ROME (Reuters) - Italian industrial output rose by 0.4% in July from the previous month, data showed on Wednesday, in a further sign of recovery for the long-struggling manufacturing sector.

A Reuters survey of 14 analysts had pointed to a 0.1% decrease.

The data was the second positive surprise in a row, after a 0.2% month-on-month rise in June compared to a forecast of a 0.1% fall.

On a work day-adjusted year-on-year basis, industrial output was up by 0.9% in July, following a 0.7% decrease in June revised from an originally reported 0.9% fall, national statistics agency ISTAT said.

Retail lobby Confcommercio said the industrial sector is showing "signs of vitality", and emphasized that July's growth extended to all major industry groups with the exception of energy.

"Signs that the downturn is over are strengthening," think tank Prometeia wrote in a report.

Some hope of recovery was also offered earlier this month by a PMI survey, showing that the Italian manufacturing sector returned to growth in August after 16 months of contraction.

Despite rising industrial output, outlook for growth at the euro zone's third largest economy is still cloudy after GDP shrank by 0.1% in the second quarter from the previous three months.

The government in April halved its economic growth estimate for 2025 to 0.6% amid mounting uncertainty due to U.S. trade tariffs.

Economy Minister Giancarlo Giorgetti on Sunday said that the economy will likely grow by 0.6% this year, in line with the government's target.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Giulia Segreti)