Italian July industrial production dropped 1.1% m/m. This was much weaker than our median of -0.1% m/m, and third consecutive monthly decline. Production was down 1.9% in the three months to July and data adds to recession fears in the eurozone and confirms Italy as one of the problem countries. Production dropped 3.2% y/y in July on a working day adjusted basis, after falling 1.7% y/y in June.