The merchandise trade surplus declined to €3.288 billion in September from €4.171 billion in August, with a fall in exports exceeding a drop in imports.

Despite the retreat, the surplus is the second highest in over two years. Trade has been in surplus for every month this year after spending all of last year in the red.

Exports slumped by 4.5 percent, with non-EU shipments plunging by close to seven percent. Imports declined by 3.1 percent, with intra-bloc imports falling by almost four percent, outweighing the drop in rest of the world imports.

The latest data take Italy's RPI to minus 32 and the RPI-P to minus 19, meaning that the Italian economy is underperforming expectations.

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.