Consumer sentiment in Italy at 9-year low when Meloni takes over | So Good News
ROME, Oct 27 (Reuters) – Morale between Italian businesses and consumers fell in October, data showed on Thursday, highlighting the challenges faced by Prime Minister Giorgia Meloni, who has received a very small economy.
Consumer sentiment was particularly depressed, with ISTAT reporting that the number has fallen to a nine-year low as the rising cost of living erodes family savings.
Meloni, who was sworn in as prime minister on Saturday at the head of a right-wing coalition, is facing a third economic crisis in the economy which the Treasury says has now collapsed.
ISTAT’s Consumer Morale Index fell to 90.1 from 94.8 in September, below the forecast of 93.8 in a Reuters poll and marking the lowest since May 2013.
Intesa Sanpaolo economist Paolo Mameli said Italians’ plans to buy solid goods were also the lowest since 2013, when consumers’ assessment of their ability to save for the future hit a seven-year low.
Inflation has reduced the share of savings Italians were able to save between March and August by 78% compared to the first two months of the year, a survey by online bank N26 showed, a bigger drop than in Germany, France or Spain. .
Italy’s EU-adjusted consumer price inflation was 9.4% in September, the biggest increase in wages.
ISTAT’s manufacturing index fell to 100.4 in October from 101.2 in September, a smaller decline than seen in the consumer survey but still the fourth consecutive decline and the lowest reading since January last year.
The result was slightly above the average forecast of 100.0 in a Reuters poll of 11 analysts.
ISTAT’s composite business mole index, including a survey of manufacturing, retail, construction and services sectors, fell to 104.5 in October, compared to September’s reading of 105.1, registering the lowest level since April 2001.
Italy’s gross domestic product rose a stronger-than-expected 1.1% in the second quarter from three months ago, but most analysts expect a moderate slowdown for the rest of the year, as rising energy costs hit companies and households.
ISTAT will provide preliminary estimates for the third quarter of GDP on Oct. 31.
Valentina Za and Gavin Jones report
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