Italian business confidence morale rises in Oct, consumer mood weakens

ROME, Oct 28 (Reuters) – Morale amongst Italian businesses rose in October, boosted by growing optimism in the manufacturing and construction sectors, while the mood amongst consumers weakened, data showed on Thursday.

National statistics institute ISTAT’s manufacturing confidence index rose to 114.9 in October from 113.2 in September, outpacing a median forecast of 112.2 in a Reuters survey of 13 analysts.

The September figure was revised up from an originally reported 113.0.

ISTAT’s composite business morale index rose to 115.0 from a previous 113.7, with strength in the manufacturing and construction sectors offsetting declines in sentiment at retail and services companies.

Consumer confidence this month fell to 118.4 from 119.6 in September, slightly down on a median forecast of 118.5 in the Reuters’ poll but still close to historic high levels for the index.

The euro zone’s third largest economy is recovering from last year’s monster recession, when gross domestic product contracted 8.9%, hobbled by lengthy COVID-19 lockdowns.

GDP rose 2.7% in the second quarter of 2021 from the previous three months, bolstered by strong domestic demand, following a 0.2% gain in the first quarter. Preliminary third quarter data is due to be released on Friday. The government is forecasting that the economy will grow 6% in the full year.

Photo – A owner prepares to close his restaurant in the center of Turin, Italy. EPA-EFE/ALESSANDRO DI MARCO