Italy business and consumer confidence rise in July
Overview of July Confidence Data and Economic Outlook
ROME, July 31 (Reuters) - Italian business and consumer confidence rose in July, data showed on Friday, in another positive sign for the euro zone's third-largest economy, coming a day after encouraging GDP growth data.
Consumer Confidence Trends
• National statistics institute ISTAT's consumer confidence index rose to 94.2 from 92.4 the previous month, well above a median forecast of 92.5 in a Reuters' poll of six analysts.
Business Morale and Sector Performance
Composite Business Morale Index
• The composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, edged up to 95.6 from 95.3 in June.
Manufacturing Sub-Index
• The sub-index for manufacturing increased to 89.6 from 88.6, the highest level since June 2023, beating a median forecast of 88.9.
Government Economic Outlook
Growth Forecast Adjustments
• 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
• 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.
Long-Term Growth Projections
• The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
