Morale amongst Italian businesses and consumers rose in December, data showed on Friday, although the manufacturing sector was more downbeat.
National statistics institute ISTAT's composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, climbed to 107.8 in December, compared with November's reading of 106.5.
The index reached its highest level since August despite a fall in confidence among manufacturers, whose sub-index slipped to 101.4 from 102.5, missing a median forecast of 102.7 in a Reuters survey of 9 analysts.
Consumer Confidence Rises
Consumer confidence jumped this month to 102.5 from 98.1 in November, easily beating a forecast of 98.5 in Reuters' poll.
The surveys were conducted as Prime Minister Giorgia Meloni, who took office in October, prepared her first budget with some €21 billion of increased borrowing to help the economy next year.
Italian gross domestic product will contract in both this quarter and the next, the Treasury forecasts, as sky-high energy costs hit companies and households.
Elsewhere, Euro zone government bond yields were on track to post another weekly jump on Friday as the European Central Bank pledged further rate hikes and after robust labour data from the United States.
Investors expect bond prices to remain rangebound from now to the year-end after their recent fall, but they are aware that markets remain data-dependent.
News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
