ROME, Dec 10 (Reuters) - Italian industrial output fell 1.2 percent in October after a record drop the previous month, data showed on Wednesday, led by a dive in the motor industry.
The overall figure showed a second steep drop after the 2.6 percent fall in September, pointing to a deep manufacturing recession. The struggling car sector was hit particularly hard, posting an adjusted year-on-year fall of 34.3 percent.
National statistics institute ISTAT revised down September's drop from an originally reported 2.1 percent, which the agency had said was the largest fall since December 1998.
"Industrial output in the euro zone has fallen into a very deep recession, suggesting that GDP in Q4 could contract even more sharply, in Italy, France and Germany, than is currently assumed," said Bank of America economist Holger Schmieding.
The median forecast in a Reuters poll of 25 analysts had projected a smaller fall of 0.8 percent.
On a work-day adjusted year-on-year basis, October's drop of 6.9 percent was the largest fall since an identically-sized decline in December 2001.
"There is no improvement likely for the fourth quarter of 2008 and we expect the contraction to speed up," said Chiara Corsa of Unicredit MIB.
Industrial output in the first 10 months of the year was down a work-day adjusted 2.9 percent from the same period of 2007.