ROME (ITALPRESS) – In October 2024, both the index of consumer confidence and the composite indicator of business confidence are down (from 98.3 to 97.4 and from 95.6 to 93.4 respectively). This was released by Istat, noting that among consumers, there is a widespread worsening of opinions on the general economic situation and future economic situation: economic climate falls from 103.9 to 99.7 and future climate falls from 97.4 to 95.0. Instead, a slight increase is estimated for personal climate (from 96.3 to 96.6) and current climate (from 99.0 to 99.2).
With regard to businesses, the confidence index decreases in manufacturing (from 86.6 to 85.8) and, especially, in market services (from 100.4 to 95.3) while it increases in construction (from 101.9 to 103.9) and retail trade (the index rises from 102.3 to 103.7).
As for the components of the confidence indexes, in manufacturing, judgments on the level of orders and expectations on the level of production worsen; inventories are judged to be decumulating compared to last month. In construction, an improvement is estimated for both components.
Turning to the market services sector, there is a widespread deterioration in all components: judgments on both orders and business performance deteriorate sharply; expectations on orders decline moderately. In retail trade, judgments and expectations on sales show positive developments, and the balance of judgments on inventories declines.
Based on responses to quarterly questions to entrepreneurs in the manufacturing sector, in October 2024, the percentage of the degree of capacity utilization is estimated to decrease to its lowest level since 2014 excluding the pandemic period, and there is a further increase in the share of firms reporting insufficient demand as an obstacle to production activity.
“In October 2024, business confidence falls, taking it to its lowest level since April 2021,” comments the Statistical Office. The decline is due to deterioration in the manufacturing and market services sectors. In particular, in manufacturing, a decrease in confidence emerges among firms producing intermediate and capital goods, while in market services it is the transport and storage sector that shows a massive drop in opinion sentiment. The consumer confidence index shows unfavorable developments mainly due to a deterioration in opinions about the general economic situation and worsening expectations.”
– Istat press office photo –
(ITALPRESS).
