Italy: Business confidence unexpectedly rises in November
November 25, 2010
In November, the manufacturing sentiment index published by the Institute for Studies and Economic Analyses (ISAE, Istituto di Studi e Analisi Economica) rose to 101.6 points. The figure was an improvement on the 100.1 points recorded in October (previously reported: 99.8 points) and confirmed the upward trend in business sentiment evident since March 2009. The result contrasted market expectations that business sentiment would decline to 99.6 points, and marked the strongest result since March 2008, thus confirming the notion that business confidence has returned to pre-crisis levels. According to ISAE, the improvement in business sentiment was led by more optimistic expectations relative to future production together with a stronger assessment of the current level of production. Moreover, while the current assessment of demand stabilized compared to the previous month, expectations of demand going forward improved. Finally, respondents to the survey maintain a negative opinion regarding developments of the general economy in the months to come. That said, businesses are less pessimistic about the economic outlook, with the sub-index improving from minus 14 points in October to minus 13 points in November.
Author: Armando Ciccarelli, Head of Data Solutions