Italy: Business confidence unexpectedly rises in October
October 27, 2010
In October, the manufacturing sentiment index published by the Institute for Studies and Economic Analyses (ISAE, Istituto di Studi e Analisi Economica) rose to 99.8 points. The figure came up from the revised 98.6 points recorded in August (previously reported: 98.4 points) and confirmed the upward trend in business sentiment in place since March 2009. The result contrasted market expectations, which had seen business sentiment inching down to 98.5, and marked the strongest result since May 2008, thus confirming the notion that business confidence is now back to pre-crisis levels. According to ISAE, the improvement in business sentiment was led by a more optimistic assessment of demand, in particular from the external sector. In addition, the evaluation of current production improved compared to the previous month. Meanwhile, businesses' expectations relative to future production continued to rise, as manufacturers expect orders to increase going forward. Finally, contrasting the positive outlook on production expectations, respondents to the survey maintain less optimistic opinions relative to the developments of the general economy in the months to come.
Author: Armando Ciccarelli, Head of Data Solutions