Italian Economic Sentiment Indicator Drops

Annual loss of purchasing power in Italy is estimated to reach over 3,000 euros for a teacher. Despite this decline, net foreign demand showed growth. Investments increased by 0.9%, driven by residential sectors. Projections suggest Italy's annual GDP growth for 2026 could reach 0.3% if current cyclical variations remain neutral. Italy's composite business confidence indicator recorded its second consecutive decline in March. The cyclical variation for the four quarters of 2026 was 0.3%, while the average for the December-February quarter was 0.4%. Construction production saw a 0.5% seasonal increase in February following three months of decline. However, the moving quarterly dynamic remains negative at -1%. Exports fell by 2.2% and imports decreased by 4.2% during the January-February period. The data covers five sectors: pharmaceuticals, transport, metallurgy, food, and wood. The source noted that Italy's economic positioning in the current international scenario is declining. Italian retail sales in February fell 0.2% in volume, and consumer sentiment regarding the national economy worsened in March.