TREND OF THE ITALIAN ECONOMY - AUGUST 2023

The international economy is slowing down, characterized by heterogeneous dynamics across geographical areas and sectors, inflation that is still high but decreasing and restrictive financing conditions that weigh above all on domestic demand. In the second quarter, after the increase recorded in the previous three months, the gross domestic product (GDP) in Italy fell (-0.4%). The change acquired for 2023 is equal to 0.7%. On the supply side, negative signals come from the manufacturing sector. In July, after two months of consecutive growth, the seasonally adjusted industrial production index decreased by 0.7% in quarterly terms. Employment, for the first time in the year, recorded a decline in July which still leaves the number of employed people at a higher level than that of July 2022. The unemployment rate increased despite the stability of the inactivity rate. The differential in the harmonized index of consumer prices (HICP) between Italy and the euro area in August, although still positive, decreased significantly. In August, there was a general deterioration in business confidence, for which the index stood at its lowest value since November 2022. Consumer confidence, although decreasing, remained above the average level of the January-July period .

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