Italy: Consumer confidence surprises to the upside
October 26, 2010
The index of consumer sentiment from the Institute for Studies and Economic Analyses (ISAE, Istituto di Studi e Analisi Economica) jumped from 107.2 points in September to 107.7 points in October, a result that surprised market analysts, which had seen confidence dropping to 106.5 points. The monthly figure marked the strongest confidence result since the beginning of the year, but nonetheless confirmed that confidence remains below its long-term average value of 113. The consumer sentiment gauge rose, as households maintained a more upbeat assessment of the country's economic situation. In particular, the general index relative to the opinion on the country's situation inched up compared to the previous month, while short-term expectations and expectations relative to the developments in the labour market were unchanged compared to the previous month. On the other hand, respondents to the survey expressed a less upbeat assessment of their personal finances, as more households expected their personal financial situation to deteriorate in the months to come, leading to deteriorating prospects on purchases of durable goods.
Author: Armando Ciccarelli, Head of Data Solutions