Italy’s manufacturing confidence rises to 6-month high in July

Manufacturing confidence in Italy jumped to six-month high during the month of June as the country is nearing to recover from its longest streak of recession since the end of World War II.

Consumer confidence rose to 111.3 in July from 110.2 the month before, recording the highest reading since January this year, when it was also 103.1, data released by national statistics agency Istat showed Wednesday in Rome. Also, the manufacturing gauge rose to 103.1, above economists’ estimates, from a revised 102.9 in June.

In addition, the International Monetary Fund said earlier this month that the Italian economy is expected to expand 0.9 percent in 2016 and 1 percent in 2017. The country suffers from a situation where the economy is grappling the odds of increasing investor concerns amid a huge pile of bank debts that is geared to destroy the nation’s financial system.

"The economy slowed in the second quarter, in line with the rest of the euro zone," Bloomberg reported, citing Claus Vistesen, Chief euro-area Economist, Pantheon Macroeconomics Ltd., Newcastle.

Vistesen further said the banking difficulties and the possible autumn referendum pose downside risks for the country. Meanwhile, the economy is scheduled to enter into a make-or-break referendum on political reform during October or November.