Decline in Confidence in Italy in October 2023, Both Among Consumers and Businesses

The confidence climate both among consumers and businesses in Italy has seen a decrease in October 2023, according to estimates. The consumer confidence index dropped from 105.4 to 101.6, while the composite index of business confidence fell from 104.9 to 103.9.

Consumer opinions on both personal and general economic situations have shown a widespread deterioration. Consequently, the four monthly indicators calculated from these components marked negative dynamics: economic climate and future climate recorded the most significant declines (from 115.2 to 110.5 and from 113.2 to 107.7, respectively); the current climate dropped from 100.2 to 97.4, and the personal climate decreased from 102.2 to 98.6.

Regarding businesses, a reduction in the confidence index is estimated in manufacturing and services, while in construction, confidence is improving. In manufacturing, the confidence index dropped from 96.4 to 96.0; in market services and retail trade, the decline is more pronounced, with the index going from 100.5 to 98.1 and from 107.1 to 106, respectively. In construction, however, the indicator is on the rise (from 160.9 to 163.8).

As for the components of the confidence indices, in manufacturing, opinions on orders worsened while expectations for production increased, and inventories were judged to be slightly declining. In construction, all components improved.

In market services, both opinions on orders and those on business performance are worsening, while expectations on orders are on the rise. Regarding retail trade, opinions on sales are optimistic, but there is an accumulation of inventory and a deterioration in expectations for sales.

According to the usual quarterly questions on production capacity addressed to manufacturing companies, a decrease in the degree of plant utilization is estimated in the third quarter of 2023.