Italy: Consumer confidence disappoints in March
March 24, 2011
The index of consumer sentiment published by ISTAT dropped from a revised 106.3 points in February (previously reported: 106.4 points) to 105.2 points in March. The fall was less severe than expected, as market analysts saw consumer confidence dropping to 106.0 points. With the March drop, consumer confidence fell to a 7-month trough and remains below its long-term average value of 113.0 points. Consumer sentiment deteriorated as households' expectations regarding the general economy in the short term worsened, chiefly driven by a darker outlook for the labour market. In contrast, respondents to the survey judge their current personal financial situation more positively. However, households believe that their financial situation will worsen in the short term, leading to deteriorating prospects for purchases of durable goods.
Author: Armando Ciccarelli, Head of Data Solutions