International economy is decelerating characterized by heterogeneous performances across sectors and countries, decreasing although still high inflation and tight financial conditions which affect negatively domestic demand.
On the supply side, in Italy, negative signals are coming from the manufacturing sector. In July, the industrial production index, decreased by 0.7% with respect to June after two months of increases in a row.
For the first time in 2023, labour market conditions worsened. In July the number of employed people fell, though remaining higher than July 2022 levels, while unemployed and inactive persons increased.
In July, according to preliminary estimates, the Italian harmonised index of consumer prices (HICP) continued to decelerate on annual basis. The differential with the euro area, even if still positive, diminished substantially.
Surveys results in August show a generalised worsening of business and consumer confidence. The business climate index fell to its lowest value since November 2022 while consumer confidence is still higher than the average for the period January-July