Table of Contents:
The deterioration of economic confidence
The climate of business and consumer confidence in Italy has fallen significantly, reaching its lowest levels since 2021. This negative trend, which continues for three consecutive months, is mainly attributable to a deterioration in the market services and construction sectors. According to data provided by ISTAT, consumer confidence has deteriorated overall, with a balance that falls to -64.5, highlighting a growing concern for the
country’s economic situation.
Consumer expectations
Unemployment expectations showed an improvement, but this did not compensate for the general pessimism regarding the purchase of durable goods. In fact, the balance for this category fell drastically from -60.6 to -71.0, signaling an increasing prudence in consumption. Consumers, while expressing more positive opinions about the household budget, remain cautious about future spending, reflecting a lack of confidence in
the economic outlook.
Companies and their state of health
In the business sector, there is an increase in confidence in manufacturing and retail, while construction and market services show a decline. Views on order levels in manufacturing have improved, but expectations for future production are decreasing. This scenario highlights a disparity between the various sectors, with retail continuing to show signs of growth, while construction faces significant challenges
.
The reactions of consumer associations
Consumer associations, such as Codacons and the National Consumer Union, have expressed concern about the decline in confidence and the economic measures taken by the government. According to Carlo Rienzi, president of Codacons, the pessimism of Italian families is evident, and the decrease in the propensity to buy durable goods could have negative repercussions on industry and commerce. Massimiliano Dona, president of the National Consumer Union, emphasized the importance of a targeted intervention to support families most in difficulty, rather than favoring the
wealthiest classes.
Conclusions and future prospects
In summary, the decline in business and consumer confidence in Italy represents an alarm bell for the country’s economy. Economic uncertainties and growing prudence in consumption could negatively affect economic growth in the short term. It is crucial that the government takes effective measures to address these challenges and restore trust between citizens and businesses
.
