Italian expected employment from the European Commission's (EC) June business survey fell 3.4 points to 104.2. This was the lowest reading since April 2021.

• Although still above the long-term average of 100, the gradual trend lower in expected employment could suggest limited further downside in the Italian unemployment rate going forward.
• All industries saw a fall in expected employment other than in construction, with the retail sector metric falling to 9.1 points (vs 16.7 prior).
• The unemployment rate is already at historically low levels (6.9% in April), with May data due next Tuesday.
• The EC survey indicated falling expected prices in the retail and services sectors, while industry expectations rose slightly.
• Both the EC and ISTAT (also released today) surveys showed slight improvements in consumer confidence, while overall business confidence softened.