Consumer confidence in Italy fell slightly in November, with the confidence index falling from 97.4 to 96.6, according to new data from Istat.
Istat noted that the decline was mainly driven by a drop in the economic and future indices, which fell from 99.7 to 97.8 and from 95.0 to 93.8, respectively.
Additionally, the current climate index declined slightly from 99.2 to 98.7, while the personal climate index decreased marginally from 96.6 to 96.2.
The deterioration in consumer confidence was linked to expectations about unemployment and customer perceptions over the purchase of durable goods.
Business confidence
In business terms, meanwhile, the overall business confidence climate, as measured by the Istat Economic Sentiment Indicator (IESI), decreased from 93.4 to 93.1.
Within the various sectors, manufacturing confidence showed an improvement, with the index rising from 85.8 to 86.5. This was driven by more optimistic assessments of order books, although concerns about future production levels have remained.
The construction sector reported a decline in confidence, with the index dropping from 103.9 to 101.5, reflecting worsened expectations regarding future employment, despite improved assessments of order books.
In the services sector, business confidence dropped from 95.2 to 93.7, mainly due to weaker expectations for future order volumes and a deterioration in assessments of current business conditions.
On the other hand, the retail trade confidence climate showed a marked improvement, from 103.8 to 106.7, driven by positive trends in current business activity and improved future business expectations.
Lowest level since April 2021
‘In November 2024, business confidence fell for the third consecutive month, remaining at its lowest level since April 2021,’ Istat said in a statement. ‘The decline is due to the worsening in the market services and construction sectors.
‘The consumer confidence index shows an unfavourable evolution mainly due to the worsening of both unemployment expectations and opinions on the opportunity to purchase durable goods in the current phase.’ Read more here.
