Italy business and consumer morale fall in April

Rome: Morale amongst Italian businesses and consumers fell in April, data showed on Wednesday, casting a shadow over growth prospects in the euro zone’s second largest economy going into the second quarter of the year.

National statistics institute ISTAT’s manufacturing confidence index declined to 87.6 in April from 88.4 the month before, coming in well short of a median forecast of 89.5 in a survey of eight analysts.

ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, dropped to 95.8 from March’s reading of 97.0.

Consumer confidence fell in April for a second month running to 95.2 from March’s 96.5, missing a median forecast of 96.9 in a poll.

Italian gross domestic product grew by 0.2% in both the third and fourth quarters of 2023. Most analysts expect a similar rate or a slight acceleration in the first quarter of this year.