ROME (ITALPRESS) – Judgments on the general economic situation among Italian firms in industry and services with at least 50 employees remained cautious in the third quarter of the year.
This is according to the Bank of Italy’s survey of Italian firms conducted between Aug. 26 and Sept. 16, 2024, which also shows worsening expectations for the fourth quarter. Assessments of current demand trends for both domestic and foreign demand have worsened overall, led by weak sales by firms in the narrow industry. Expectations for the next quarter are also less positive than last spring in all business sectors. Businesses’ outlook on their own short-term operating conditions remains weak, still mainly affected by economic and political uncertainty. Businesses continue to report negative assessments on conditions for investing while those on access to credit remain stable; the overall liquidity position is still considered satisfactory. Overall investment spending is expected to slow in the current year. Employment dynamics expected for the next quarter are less favorable than in the previous survey, but expansion is still foreshadowed, especially in construction.
The prices charged by firms in the past 12 months have grown at a less intense pace than in the previous survey; for the next 12 months, firms in the narrow industry and services sectors continue to expect their prices to grow moderately, compared with a higher dynamic in construction. Business expectations for consumer inflation rose slightly over all time horizons, but remained at moderate levels. It also emerged that within the next two years artificial intelligence will be used by about one-third of industrial firms and two-fifths of service firms, especially the largest ones.
(ITALPRESS).
-Photo: Photogram Agency-
Business ratings of the economy worsen
