Key facts
- Italian business and consumer confidence improved in July.
- The consumer confidence index rose to 94.2 from 92.4.
- The composite business morale index increased to 95.6 from 95.3.
- Italy's EU-harmonised inflation slowed to 2.9% year-on-year in July.
- Core inflation accelerated to 1.7% year-on-year in July.
Italian business and consumer confidence saw an uptick in July, offering a positive signal for the euro zone's third-largest economy. The national statistics institute ISTAT reported that the consumer confidence index climbed to 94.2 from 92.4 in the previous month. The composite business morale index edged up to 95.6 from 95.3 in June, with the manufacturing sub-index improving to 89.6. Meanwhile, Italy's EU-harmonised consumer prices fell 1.0% in July from the month before due to seasonal summer discounts, with the annual inflation rate slowing slightly to 2.9% from June's 3.0%. The year-on-year reading was slightly above a median forecast of 2.8% in a Reuters survey. Core inflation, net of fresh food and energy, accelerated to 1.7% year-on-year on the HICP index in July from 1.5% in June. The main domestic price index (NIC) was up 0.2% month-on-month and 2.8% annually.