MNI BRIEF: Italian Firms Lower Price, Growth Expectations -BOI

Italian firms trimmed inflation expectation outlooks for 6, 12 and 24 months horizons when compared with their view in Q2, the latest Bank of Italy survey on companies with more than 50 workers showed.

 

Firms see prices growing at 1.8% for both 6 and 12 months and by 1.9% in 24 months, compared with Q2 results which aw prices growing at 2% across all time horizons surveyed. Firms still foresee a weak increase in sales in future months, but growth expectations have worsened compared with months ago, especially for Industry and Services sectors.

 

Exports are being hit by a stronger euro and U.S. tariffs with 42% and 17% of industrial and services firms seeing a moderate impact and 8% and 4%, respectively noting a big impact. However, investment is expected to grow in the second part of the year, especially for construction firms helped by NGEU funds.