Italy: Business confidence hits 22-month low likely affected by persistent political uncertainty and rising interest rates
The National Institute of Statistics (Istat)’s composite business confidence indicator (Clima di Fiducia delle Imprese Italiane, IESE)—which covers the manufacturing, construction, services and retail sectors—edged down to 102.6 points in October from September’s revised 103.6 points (previously reported: 103.7 points).
October’s reading was the result of a deterioration in sentiment in the manufacturing, trade and business services sectors, which more than offset improved sentiment in the construction sector. Confidence in the manufacturing sector deteriorated on less favorable assessments on order books and production expectations, while confidence in the retail trade also lost ground due to deteriorated assessments of current sales and weaker expectations of future sales. Meanwhile, confidence in the services sector went down as assessments of both order books and business trend weakened. On the other hand, confidence in the construction sector improved, supported by better assessments of order books and construction plans.