Italy business and consumer confidence fall in September

Italy Business and Consumer Confidence Declines Sharply in September Data

September Economic Sentiment and Outlook in Italy

ROME, Sept 30 (Reuters) - Italian business and consumer confidence fell in September, data showed on Wednesday, in a negative sign for the prospects of the euro zone's third largest economy.

Consumer Confidence Index Results

• National statistics institute ISTAT's consumer confidence index dropped to 91.2 from 94.5 the previous month, far below a median forecast of 94.0 in a Reuters' poll of six analysts.

Business Morale and Sector Performance

Composite Business Morale Index

• ISTAT's composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, slipped to 95.9 against 97.0 in August.

Manufacturing Sub-Index

• The sub-index for manufacturing, however, climbed to 91.9, above a median forecast of 90.5, from 90.2 the month before.

Government Economic Outlook

Growth Outlook Revisions

• Giorgia Meloni's government in April cut its economic growth outlook to 0.6% for this year and next, reflecting surging energy prices and turmoil in the Middle East, from previous targets of 0.7% and 0.8% respectively.

GDP Data and Resilience

Stronger-than-Expected GDP Data

• However, gross domestic product data in the first and second quarters came in stronger than expected, suggesting some economic resilience to the Middle-East crisis.

Upcoming Government Projections

• The government is expected to update its projections this week, and has said growth is likely to be forecast at close to 1% for this year.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)