Business and consumer confidence recovered in December

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The climate of confidence in Italy is substantially recovering. In December, that of businesses grew from 103.5 to 107.2 while that of consumers jumped from 103.6 to 106.7. For the latter, Istat reports, it is about the improvement in sentiment regarding the general economic situation and the future one. The data is refuted by the four indicators calculated monthly starting from the same components of the confidence climate: the economic climate and the future climate record the most significant increases with the first going from 111.0 to 118.6 and the second from 109.3 at 113.5. Furthermore, the current climate increases from 99.8 to 102.2 and the personal climate increases from 101.2 to 102.8. As regards businesses, after four months of decline, Istat records a reversal of the trend in all sectors. In market services there was a marked increase with the index going from 96.7 to 106.4; in construction and retail trade the increase is more limited with the index growing respectively from 161.3 to 162.9 and from 107.5 to 107.8. The confidence of manufacturing companies is reported to have worsened slightly with the change from 96.6 to 95.4.

«In December, the climate of business confidence began to increase again after four consecutive months of reduction and reached the highest level since last July – reports the Institute -. The increase in the index is determined by the service and construction sectors. The consumer confidence index increases for the second consecutive month and also returns to the July 2023 level. There is a general improvement in all the variables that make up the indicator with the exception of opinions on the opportunity to save in the current phase, which remain substantially stable compared to last month”.

In detail, the various components of the business confidence index show in manufacturing assessments on orders and inventories of finished products that are essentially stable compared to last month which are combined with decidedly worsening production expectations. In construction, an improvement in all components is estimated. In market services there is a marked improvement in opinions on orders and business performance and expectations on orders also increase but the increase in the balance is less significant than the opinions. In retail trade, an extremely positive dynamic is estimated for opinions on sales, while the related expectations are decreasing; this evolution is determined by large-scale distribution, while in traditional distribution negative opinions on sales are combined with an increase in related expectations. As for the stocks of finished products, they are judged to be in decumulation.

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