Italian industry has slashed its electricity consumption by almost a third in two months in a stark sign of the force of the recession and serious blow to efforts by Silvio Berlusconi's centre-right government to play down the depth of the crisis.

Terna, the company responsible for electricity transmission across the national grid, recorded a 30 per cent fall in October and November, Flavio Cattaneo, chief executive, said. Output of steel and cars was particularly affected.