MNI BRIEF: Italian Firms See China Trade Competition Increase

A significant share of Italian firms see activity impacted by increased Chinese competition in their sales markets, despite outright redirection of goods due to U.S. tariffs proving limited, a survey for the  Bank of Italy’s Economic Bulletin shows.

“Manufacturing activity could be affected in many sectors by intensifying competition from China, in a context of trade flows originating in China being rerouted to countries other than the United States”, the BOI said, adding that the prospects for this sector remain uncertain.

According to the BOI estimates, Italy's economy continued to expand moderately in Q4 driven by the service sector and by a recovery in manufacturing, along with a rise in investment. Household consumption remained cautious despite countinued modest wage growth, as geopolitics developments weighed.