Italy business confidence steady, consumer morale rises in February

Rome: Morale amongst Italian businesses was steady in February, while consumer confidence rose, data showed on Monday.

National statistics institute ISTAT’s manufacturing confidence index was unchanged at 102.8 this month. The January figure was previously given as 102.7.

ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, was also unchanged at 109.1 thanks to improved sentiment among retailers, while morale in the service and construction sectors dipped.

ISTAT said the rise was due to positive expectations for the general economic outlook and improving assessments of both the advisability of making purchases in the short term and the possibility of saving in the future.

Despite facing many headwinds, the euro zone’s third largest economy has appeared to be holding up better than expected a few months despite high energy costs exacerbated by the war in Ukraine.

However, gross domestic product probably contracted in the fourth quarter of 2022 and will also fall in the current quarter, according to Treasury estimates.