Italy business and consumer morale fall in August

Rome: Morale amongst Italian businesses and consumers fell in August, data showed on Wednesday, amid signs of continuing weakness for the euro zone’s third largest economy.

National statistics institute ISTAT’s manufacturing confidence index declined to 97.8 in August from 99.1 the month before, posting its lowest reading since January 2021.

The median forecast in a poll of eight analysts had pointed to 98.0.

ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, fell in August to 106.8, compared with July’s reading of 108.9.

The August level was the lowest since November last year, as all the business sectors weakened.

Consumer confidence was more resilient but still edged down for a second month running to 106.5 in August from 106.7 in July.

Analysts had expected a steeper drop to 105.6, according to a poll.

Italian gross domestic product shrank by 0.3% in the second quarter from the previous three months, and most analysts expect continued weakness over the second half of the year.

ISTAT has forecast a full-year 2023 GDP rise of 1.2%, compared with last year’s buoyant 3.7% growth.