Italy: Consumer confidence drops in July
July 25, 2011
The index of consumer sentiment published by ISTAT fell from 105.8 points in June to 103.7 points in July. The result marked a second consecutive drop in the index and was sharper than expected by market analysts, which had consumer confidence moderating to 104.5 points. With the July reading, consumer confidence moved further away from its long-term average of 113.0 points, which does not bode well for private consumption going forward. The July result implied a strong deterioration in expectations regarding the general economic situation (-13.0 points) and the personal financial situation (-4.0 points), as households are increasingly concerned about the effects of the recent budget cuts. Consequently, prospects for purchases of durable goods dropped markedly compared to the previous month (-5.0 points).
Author: Armando Ciccarelli, Head of Data Solutions