The outlook for Italian companies is gloomier due to fears of a trade war, a Reuters survey of the central bank shows
MILAN (Reuters) – Pessimism about the economic outlook has risen among Italian businesses as worries about an international trade war weigh on sentiment, the Bank of Italy said in a survey published on Tuesday.
US President-elect Donald Trump has threatened to impose heavy tariffs on imports from Europe, China and other countries, raising concerns about trade disputes.
The percentage of Italian companies reporting negative ratings in the fourth quarter rose to 30% from 21% in the central bank’s previous quarterly survey.
The share of companies showing improvement remained almost unchanged at 5% from 6%.
The unfavorable forecast “is still influenced by economic and political uncertainty and, to a lesser extent, fears about energy price movements and, especially among exporting companies, about international trade policy,” the study said, without specifying what political policy concerns were weighed.
The Bank of Italy survey also found that businesses expect inflation to be 1.5% over the next 12 months, down from 1.7% in the previous survey. According to the latest data, EU-aligned inflation in Italy was 1.4% on an annual basis in December.
The central bank’s survey was conducted from November 20 to December 12 among Italian industrial and service companies with at least 50 employees.
