Monthly report on Italian economy

International economy has become more uneven and signs of tempering momentum are
emerging. The main factors behind the deceleration are the incomplete Brexit process
and the impact of enduring “tariffs war” between the United States and China.

Recent trend in manufacturing sector confirmed the weakness of the Italian economic
activity.

The employment rate has been stabilizing, while there was a marginal reduction in the
unemployment rate. Although the employment returned to pre-crisis levels, the decrease
of the unemployment rate was still very slow.

The fall in energy prices was the main driver of inflation deceleration in Italy and in the
Eurozone but the inflation gap remained in favour of Italy.

In December, the consumer and business confidence continued to show a widespread
fall, with few exceptions, to all the components. The leading indicator decreased further
suggesting that the weakness of the Italian current cyclical position will continue in the
coming months.