Italy’s economy displayed signs of weakness on Friday, as new data revealed a decline in business and consumer confidence, as well as industrial turnover. The National Institute of Statistics (ISTAT) reported that both business and consumer confidence decreased in October, with individuals and families experiencing the largest decline. Consumer confidence fell to 101.6 points, the lowest value since January, compared to 105.4 points in the previous month. Business confidence also declined, reaching 103.9 points, the lowest level since April 2021.
The ISTAT’s survey, which uses a 100-point baseline from 2010, highlighted the importance of business and consumer confidence as leading indicators of economic performance.
Additionally, ISTAT reported a 5% year-on-year decrease in the seasonally adjusted index of industrial turnover in August, with contractions observed in both the domestic and foreign markets. Compared to July, industrial turnover decreased by 0.4%.
ISTAT is scheduled to release the third-quarter economic growth data next week. Italy’s gross domestic product contracted by 0.4% in the second quarter.
Market reaction in Italy was slightly negative, with the blue-chip index on the Italian Stock Exchange in Milan declining by 0.6%. The yield on Italy’s ten-year government bond also experienced a slight decline, finishing the week at 4.81%.
