Monthly report on Italian economy

In May, uncertainty concerning the future of the international trade relationships persisted. USA and China have not reached yet a deal and the bilateral agreements between USA and EU and Japan are still at a preliminary stage.

In Italy, in Q1 2019 the seasonally and calendar adjusted, chained volume measure of Gross Domestic Product (GDP) increased by 0.1% to the previous quarter driven by final consumption expenditure, gross fixed capital formation and net exports mainly because of a sharp fall in imports.

In Q1, hours worked increased at a pace stronger that GDP while in April labour market conditions remained stationary.

Inflation decelerated confirming the gap with respect to the euro area average also for the core component.

In May, the consumer confidence increased driven by the economic and current component. In the same period, the improvement in business confidence was broad based. The leading indicator continued to decrease although at a decelerating pace with respect to the previous periods, suggesting that Italian economy will continue to stay on a moderating path.