The decline in business confidence in Italy
In the month of October 2024, Italy recorded a significant drop in business confidence, falling to a minimum level that had not been seen since April 2021. According to data provided by ISTAT, the business confidence index decreased from 95.6 to 93.4, while the consumer confidence index rose from 98.3 to 97.4. This deterioration is attributable to a negative perception of the general economic situation and to pessimistic forecasts for
the future.
The causes of the deterioration of confidence
There are many reasons for this decline. First, global economic uncertainty has had a direct impact on business expectations. Geopolitical tensions, inflation and rising raw material costs have helped to create a climate of mistrust. In addition, negative opinions about the current economic situation have influenced companies’ investment decisions, leading to a stagnation in productive activities
.
Impact on markets and companies
The decline in confidence is also reflected in the financial markets. At Piazza Affari, the opening was slow, with some stocks showing signs of resilience, such as Eni and Saipem, which recorded positive results in the third quarter. However, other companies, such as Mercedes-Benz, have announced a 64% drop in the earnings of their automotive division, highlighting the difficulties that many businesses are facing. In this context, the Webuild Group has obtained a 190 million dollar contract in Florida, demonstrating that there are still opportunities for growth, even in a complex environment
.
