Italy: Consumer confidence plunges to crisis levels
January 28, 2011
The index of consumer sentiment published by ISTAT plunged from 109.1 points in December to 105.9 points in January. The result came in below market expectations, which saw confidence dropping slightly to 108.9 points, and marked the first decline in the index after four consecutive increases. Consumer sentiment has now fallen back to levels last seen in August 2009 and index remains below its long-term average value of 113 points. The deterioration was mainly driven by a weaker assessment of the current economic situation, coupled with a more pessimistic near-term outlook .The expectations sub-index regarding the general economy in the short term is now at its lowest level since March 2009. However, households display a rosier assessment of their current financial situation and even though they are more pessimistic about their financial situation in the near term an increasing number of households believe this to be a good time to purchase durable goods.
Author: Armando Ciccarelli, Head of Data Solutions