Italy: Consumer confidence unchanged, business confidence down
November’s reading reflected a moderate deterioration in households’ assessments of both the current economic situation and their general economic expectations for the future, with the latter recording the worst result in over two and a half years.
On the other hand, households’ assessments of their willingness to buy as well as of their personal current and future economic situation improved slightly.
Panelists expect private consumption to expand 1.2% in 2016, which is unchanged from last month’s forecast. For 2017, panelists see private consumption growing 0.8%, which is also unchanged from last month’s projection.
The National Institute of Statistics’ (Istat) composite business confidence indicator (IESE, Istat Economic Sentiment Indicator), which covers the manufacturing, construction, service and retail sectors, dropped from a revised 101.7 in October (previously reported: 102.4) to 101.4 in November.
Three out of the four categories of the indicator deteriorated compared to October: manufacturing, services and construction. Only the retail sector improved to an 11-month high from October.
Panelists expect fixed investment to increase 1.7% in 2016, which is up 0.1 percentage points from last month’s forecast. For 2017, panelists see fixed investment growing 1.3%, which is unchanged from last month’s projection. ■