Business confidence in Italy strengthens in February to one-year high
Staff Writer |
Business sentiment amongst Italian private sector companies improved again in February, with optimism regarding activity, profits and new business at their highest for a year.
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Manufacturers were especially upbeat, with confidence regarding activity and new business reaching the best since 2015.
Improved trends in domestic and foreign demand, plus the expected rewards from past and current investment, were noted as reasons to be confident.
Overall, the net balance of companies anticipating an improvement in activity over the next 12 months rose to 41%, from +40% in the previous survey period.
That was, however, a little lower than the EZ average (+43%).
At the broad sector level, manufacturers (+44%) remained more upbeat than their service sector counterparts (+40%).
Expected gains in activity remained synonymous with forecasts of higher revenues and, subsequently, growth in profits.
At the aggregate level, companies were at their most upbeat about revenues and profits in 12 months.
A widening of client bases, improved market stability, and the opening of new markets, especially in emerging economies, were all reported as factors likely to drive growth in the next 12 months.
Italy business activity expectations Optimism for revenues in manufacturing was at its highest level since mid-2014, whilst forecasts for profitability were only slightly less positive than the previous survey’s near four-year peak.
In services, revenue and profitability expectations were at their highest in a year.
Amid expectations of increased levels of activity, revenues and profitability, Italian companies are more confident about raising staffing levels than at any time since data were first collected in late 2009.
The respective net balance of +20% was a notable improvement on last October’s +17%, with growth likely to be driven by the service sector primarily.
Companies here were at their most optimistic in the series history.
In contrast, employment expectations amongst manufacturers were only slightly lower than October’s record high.
Encouraged by positive demand trends and expectations of further economic growth, both domestically and abroad, capital expenditure plans remained inside positive territory during February. ■