Report on Italian economy

International economy continues to show moderate but stable growth, supported by a decrease in inflation and still solid labor market conditions in many countries.

In the second quarter, Italy’s gross domestic product (GDP) recorded a slight increase on a quarterly basis, marking the fourth consecutive positive growth rate.

 Industrial production showed a new contraction in July, following increases in the previous two months.

Exports of goods in value remain lackluster; direct sales to EU markets continue to decline.

The upward trend in employment continued in July; the number of employed persons exceeded 24 million units for the first time since this series began..

The trend of the harmonized consumer price index (HICP), which slightly rose in July and August, was driven by a strengthening of inflation in services, only partially offset by reductions in the goods sector.

Business confidence improved in August, following four months of decline; consumer confidence worsened  after three months of increase, driven by a deterioration in all components of the index.

Focus: In Italy, the downward phase of the industrial production index does not yet seem to be over. However, the contraction spread among the productive sectors has been heterogeneous. Starting from 2022, the diffusion indicator for capital goods initially expanded and later indicated a contraction for more than 50% of the sectors. In contrast, the index for consumer goods, starting from January 2024, has shown an increase in the share of expanding sectors, which has continued in the most recent months.