Global economic activity has been decelerating characterized by uncertainty related to the war evolution, inflationary pressures and changes in the stance of monetary policy in the main countries.
In May, the Italian industrial production index decreased by 1,1% with respect to April after three increases in a row. The level of the index remains higher than in the 2021.
In May the number of employed and unemployed persons decreased (the unemployment rate fell to 8.1%) while inactive people increased.
According to preliminary estimates, the Italian harmonised index of consumer prices (HICP) increased by 8.5% on annual basis (from +7.3% in the previous month). Inflation pressure is spreading out to all the components.
In the next months, downside risks are related to the inflation diffusion, worsening of the trade balance and sentiment amid consumers. However, firms’ expectation remains positive and labour market conditions are stable.