Consumer and Business Confidence Surge in Italy for December 2023

Italy, December 2023: In a press release, it’s estimated that both consumer confidence (index rising from 103.6 to 106.7) and the composite indicator of business confidence (increasing from 103.5 to 107.2) will experience growth this month.

Consumers exhibit a widespread improvement in opinions, particularly regarding the general economic situation and the future outlook. Notably, all four monthly indicators calculated from confidence components showcase positive developments, with economic and future climate experiencing the most substantial increases (from 111.0 to 118.6 and from 109.3 to 113.5, respectively). Current climate rises from 99.8 to 102.2, and personal climate ascends from 101.2 to 102.8.

On the business front, confidence improves across various sectors except manufacturing. Service industries show a marked increase (index rising from 96.7 to 106.4), while construction and retail experience more moderate gains (indexes growing from 161.3 to 162.9 and from 107.5 to 107.8, respectively). However, manufacturing confidence is estimated to decline (index decreasing from 96.6 to 95.4).

Regarding confidence components, manufacturing sees stable judgments on orders and stocks of finished products, paired with expectations of production witnessing a significant downturn. Construction witnesses an improvement in all components.

In market services, there’s a substantial improvement in judgments on orders and business performance, with expectations on orders also increasing, albeit less significantly. Retail trade indicates an extremely positive trend for judgments on sales, while expectations decline, primarily driven by large-scale distribution. Traditional retail sees negative opinions on sales with increased expectations. Stocks of finished products are judged to be in accumulation.

Commenting on the results, the business confidence index rebounds after four consecutive months of decline, reaching the highest level since July. The increase is attributed to the service and construction sectors.

The consumer confidence index rises for the second consecutive month, reaching the level of July 2023. There is a general improvement in all variables except judgments on the opportunity to save in the current phase, which remain stable compared to the previous month.