Italy business confidence holds up in April, consumer morale drops to 18-month low

ROME, April 28 (Reuters) – Morale amongst Italian businesses held steady around recent lows in April but consumer confidence declined further, data showed on Thursday, as the economy slows and uncertainty increases over the war in Ukraine.

National statistics institute ISTAT’s manufacturing confidence index slipped marginally to 110.0 in April from 110.1 in March, which was revised down from a previously reported 110.3.

The April reading was exactly in line with the median forecast in a Reuters survey of nine analysts.

ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, rose to 105.5 in April, compared with March’s reading of 105.3 (revised from 105.4).

However, consumer confidence fell this month to 100.0 from 100.8 in March, short of a median forecast of 100.4 in Reuters’ poll and the lowest reading since November 2020.

Prime Minister Mario Draghi’s government this month revised down its 2022 economic growth forecast to 3.1% from a 4.7% projection made last September.

The Bank of Italy has estimated a gross domestic product contraction of 0.7% in the first quarter compared with the previous three months.

ISTAT gave the following data on the April manufacturing confidence survey:

April march feb jan

Overall index 110.0 110.1r 112.8r 113.2r

Orders level 5.8 7.3r 7.8r 8.9r

Inventories -0.9 -0.4 -0.4 1.2

Output outlook 6.9 6.4r 13.5r 15.1r

r=revised

((Reporting by Gavin Jones, gavin.jones@thomsonreuters.com))