The seasonally adjusted merchandise trade balance was in a €3.4 billion surplus in July, up from a much smaller revised €2.0 billion in June and now the strongest performance so far in 2023.

However, the headline improvement masked a contraction in both sides of the balance sheet. Exports fell 1.8 percent on the month, their fourth drop since February, while imports were down a steeper 4.7 percent, their sixth decrease in the last seven months. The drop in the former was partially attributable to energy which nosedived 11.5 percent on the back of weaker prices. However, with consumer goods also down 3.0 percent and intermediates 1.8 percent, the decline would have been more pronounced but for a 0.4 percent rise in capital goods.

Exports to other EU countries fell 1.5 percent and to non-EU countries 2.2 percent. Imports from the EU slumped 6.3 percent and were off 2.5 percent from non-EU states.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.

Separate reports are published for external and internal EU trade. The extra-EU trade data are compiled on the basis of customs declarations with non-EU countries. The intra-EU trade data (Intrastat) are derived from surveys and provide statistics on trade between Italy and other EU member states. The data are available monthly. World trade data are available within one month after the reference month while intra-EU trade data are available within 7 weeks after the reference month.