Monthly report on Italian economy no

Geopolitical turbulences, rising protectionism and Chinese economy deceleration continue to affect negatively the international trade.

In Italy, latest data on GDP has shown a slight upwards revision with an increase in Q1 and in Q2 (+0,1%), but in July the Italian industrial production decreased for the second time in a row with a fall spread to all sectors but the energy one.

In the first six months of the year, the labour market improved conditions determined an increase of gross disposable income with positive spillovers on household’s purchasing power and saving propensity.

In September, core and headline inflation remain moderate. Moreover, qualitative indicators suggest that in the short-term prices will continue to grow modestly.

Recent confidence indicators gave conflicting signals: consumer confidence improved slightly while the business confidence climate decreased with a particular fall in the manufacturing component.

The leading indicator remain negative confirming that the short-term perspectives for Italian production are weak.