An improvement for the Junior All Whites but still the same result at the under-17 World Cup in the United Arab Emirates.
After opening the tournament with a 7-0 defeat to Uruguay, the Junior All Whites lost their second match following a 1-0 loss to Italy in Ras Al-Khaimah.
New Zealand had a chance to take an early lead when Monty Patterson stepped up for a penalty in the 18th minute but it was saved by Italian goalkeeper Simone Scuffet.
Italy took the lead shortly after halftime when Luca Vido scored in the 51st minute.
New Zealand remain at the bottom of group B with their second straight defeat after their opening 7-0 loss to Uruguay. They face Ivory Coast next on Thursday who drew 1-1 with Uruguay.
