Italy's economy shows signs of improvement, says institute

Institute pointed out as positive factors the increase in consumer confidence

Italy's economy is showing slight signs of recovery, according to reports published on Monday (5) by the National Institute of Statistics (Istat) and IHS Markit.

In its monthly statement, Istat reported that the anticipated indicator of the Gross Domestic Product (GDP) for July “interrupted its trend towards flexion, observed since the end of last year, and prospected a scenario of slight improvement in production levels”.

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The institute pointed out as positive factors the increase in consumer confidence, in addition to the reflections of the reduction in the unemployment rate in June, the stabilization of the number of employed Italians and the fall in inflation.

The services PMI index, prepared by IHS Markit, presented a better result in July in Italy, for the second consecutive month, reaching 51,7 points, the highest level reached in four months.

In June, the PMI had stood at 50,5 points. The result for the tertiary sector is higher than expected by sector analysts, 50,6 points. In the euro zone, however, the services PMI index showed a retraction, falling from 52,2 points in June to 51,5 in July.

The main doubts highlighted by Istat regarding the resumption of Italian GDP growth are related to the effects that the trade war between the United States and China may have on the global economy.

“The prospects for international trade, penalized by trade tension and the slowdown in China’s economic activity, remain negative,” highlighted the report.

By Ansa Agency