ROME, Dec 23 (Reuters) – Morale among Italian businesses and consumers rose in December, data showed on Friday, although the manufacturing sector was weaker.
The National Statistics Institute ISTAT’s composite index of business sentiment, combining surveys of the manufacturing, retail, construction and services sectors, rose to 107.8 in December, compared with November’s reading of 106.5.
The index hit its highest level since August despite a drop in confidence among manufacturers, whose sub-index fell to 101.4 from 102.5, missing an average forecast of 102.7 in a Reuters poll of 9 analysts.
Consumer confidence rose this month to 102.5 from 98.1 in November, easily beating a forecast of 98.5 in a Reuters poll.
The polls were conducted as Prime Minister Giorgia Meloni, who took office in October, prepared her first budget with about 21 billion euros in increased borrowing to help the economy next year.
Italian gross domestic product will shrink both this quarter and next, the Treasury predicts, as high energy costs hit companies and households.
ISTAT provided the following data for the December manufacturing confidence survey:
December November October September
General index 101.4 102.5 100.7 101.4r
Order level -9.9 -9.5r -8.2r -6.0
Inventories 4.8 4.4r 3.9 3.2
Output outlook 3.8 6.1r -0.7r -1.5r
r=reviewed
((Reporting by Gavin Jones, gavin.jones@thomsonreuters.com))
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