Italian confidence indices improve in August. Will the positive trend continue?

Both business and consumer confidence indices improved in August, suggesting that economic outlook is slightly improving also in Italy.

1) manufacturing confidence index rose from 91.8 to 92.9 - the highest since November '11. Despite remaing at value in line with a contraction of industrial output in the next 2/3 months, it signalled that industrial sector could find a bottom soon;

 

2) Consumer confidence index rose from 97.4 to 98.9. It is a sign that consumer spending could improve in H2 '13 even if at modest pace due to high unemployment rate.

The two data strengthened the view that - absent other negative shocks - Italian economy could stabilize in Q3 and return to growth in Q4