| Actual | Previous | |
|---|---|---|
| Business Confidence | 96.5 | 96.1 |
| Manufacturing Confidence | 88.4 | 89.6 |
| Consumer Confidence | 96.6 | 95.0 |
Highlights
Business and consumer confidence ended the year on a high note, helping to overcome a more subdued outlook in the manufacturing sector. The mood among businesses improved to 96.5 in December from 96.1 the previous month, and continues a string of improvement.
Manufacturing and construction weighed on the overall index, falling to 88.4 from 89.5 in November and 101.0 from 102.6 respectively. Market services saw improved sentiment with a reading of 100.0 in December compared to November's 97.8, while retail sentiment was largely unchanged.
Consumers were broadly more upbeat with all major subcategories higher, with the index gaining to 96.6 from 95.0 in November. They were more optimistic over their current and future situation, while also viewing economic conditions and their personal situation more favorably.
The improved outlook is an encouraging end to the year and sets the tone for the coming months. While manufacturing continues to lag, a more positive consumer could lead to additional spending, while the improved business outlook could stoke additional investment.
Manufacturing and construction weighed on the overall index, falling to 88.4 from 89.5 in November and 101.0 from 102.6 respectively. Market services saw improved sentiment with a reading of 100.0 in December compared to November's 97.8, while retail sentiment was largely unchanged.
Consumers were broadly more upbeat with all major subcategories higher, with the index gaining to 96.6 from 95.0 in November. They were more optimistic over their current and future situation, while also viewing economic conditions and their personal situation more favorably.
The improved outlook is an encouraging end to the year and sets the tone for the coming months. While manufacturing continues to lag, a more positive consumer could lead to additional spending, while the improved business outlook could stoke additional investment.
Definition
The Italian statistics office (Istat) conducts business and consumer confidence surveys over the first fifteen and ten working days of each reference month respectively. These provide information about current and expected developments in key sector variables. The largely qualitative results are synthesized for each survey into a single number that provides an overall measure of sentiment. Business confidence reflects the combined results of separate surveys covering manufacturing, retail, construction and services.
Description
If investors want to know how the business or consumer sectors are performing as they evaluate their investment decisions, they can find timely and in depth information in the latest Istat surveys. Although short-term swings can be erratic, changes in trends in confidence can contain very useful information about a sector’s underlying health well in advance of the release of the official data. Moreover, by including some forward-looking components (e.g. manufacturing orders or consumer buying intentions) the Istat surveys can also provide a potential insight into prospective developments.
