ROME, March 26 (Reuters) - Morale among Italian consumers fell in March to its lowest since October 2023 following the US-Israeli attack on Iran, while business sentiment was roughly stable, data
Italy Consumer Morale Slumps to Lowest Level Since October 2023
Consumer and Business Sentiment in Italy: March 2024 Overview
Consumer Confidence Hits New Lows
ROME, March 26 (Reuters) - Morale among Italian consumers fell in March to its lowest since October 2023 following the US-Israeli attack on Iran, while business sentiment was roughly stable, data showed on Thursday, in mixed signs for the euro zone's third largest economy.
National statistics institute ISTAT's consumer confidence index plunged to 92.6 from 97.4 the previous month, well below a median forecast of 95.5 in a Reuters' poll of seven analysts.
Economic Forecasts and Risks
The country's main business lobby Confindustria forecast on Wednesday the Italian economy will grow by 0.5% this year, cutting its previous 0.7% estimate made in October and warning of strong downside risks if the conflict in Iran drags on.
The slump in consumer morale is more bad news for Prime Minister Giorgia Meloni, following her defeat in a March 22-23 referendum on a flagship reform of the justice system.
Business Morale and Sector Performance
The composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, decreased marginally to 97.3 this month from 97.4 in February.
Manufacturing Sector
The sub-index for manufacturing increased to 88.8 from 88.5 the previous month, ISTAT said.
Economic Growth Figures
Quarterly and Yearly Growth
The Italian economy grew by 0.3% in the fourth quarter of last year from the previous three months and expanded 0.8% on a year-on-year basis, a slightly stronger reading than expected.
Government Targets and Projections
The government currently has an economic growth target of 0.7% for this year, which it set last autumn, and is due to publish updated targets next month.
Italian gross domestic product rose 0.5% in 2025, a third straight year of sub-1% growth.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
