Italy‘s GDP level remained unchanged in September/October compared to the previous three months, according to the latest Note on the Italian Economy from statistics body Istat.
Economic activity in Italy has ‘slowed down’ compared to the first half of the year, and the country is currently performing worse than both Italy’s main European partners and the euro area average, Istat noted.
Industrial production was down 0.4% in September, with the average for the third quarter showing a 0.6% decline compared to the previous three months, while the construction sector ‘experienced a substantial slowdown’ in August.
Business sentiment among Italian firms has now reached its lowest point sine April 2021, Istat noted, which reflects an increase in construction and retail sales and a sharp decline in the market services sector, especially in transportation and warehousing.
Consumer prices
Consumer prices in Italy experienced modest increases, with the consumer price index growing by 0.9% year-on-year in October, up from 0.7% in September. Although food prices have started rising again, energy prices continued their decline, helping to moderate overall inflation.
Consumer confidence dropped sharply in October, with the overall index falling from 103.9 to 99.7, reflecting a pervasive sense of economic uncertainty.
Elsewhere, Italy’s goods trade has also slowed, with exports falling by 1.5% in the June-August period compared to the prior three months.
This decline was largely due to weakened sales to EU countries, particularly France and Germany, although exports to non-EU countries posted minor growth. Imports declined more sharply than exports, leading to an improved trade surplus of over 37 billion euros by August.
Employment figures
Employment in Italy showed mixed results in September, Istat noted. Although there was a quarterly increase of 0.4% in employment (84,000 more jobs), the monthly data reflected a decline in the total number of employed individuals, particularly among those aged 35-49.
Meanwhile, youth unemployment rose slightly to 18.3%, and inactivity increased, reflecting a higher percentage of individuals leaving the labour market. Read more here.
