Italian business confidence index falls slightly in November, economy to grow 0.5 pct q/q in Q4 2017

Recent economic surveys show that companies and consumers in Italy appear to be relatively unconcerned regarding what might emerge from the forthcoming Italian general election, noted Daiwa Capital Markets. The ISAT confidence survey witnessed the headline business confidence index drop slightly in November, but the earlier month’s reading was the highest in over a decade, and the latest level stayed in line with an annual GDP growth rate above 2 percent year-on-year.

Looking at the detail, services confidence rose to match the highest since 2007 while the equivalent index for manufacturers dropped just a fractional from the ten-year high reached in October,  with both sectors recording an improved assessment of order books.

Moreover, construction sentiment increased to the highest since 2009, while retail and wholesale confidence drooped slightly from the 14-year high reached earlier. Additionally, even if consumer sentiment dropped for the first time in six months to stay down on the 2015 highs reached under the Renzi administration, it was still in line with acceleration in consumer spending above recent rates.

“So, overall, another quarter of Italian economic growth of about 0.5 percentQ/Q in Q417 looks perfectly feasible”, added Daiwa Capital Markets.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bullish at 69.3131, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -53.3235. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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