(Finance) – “Signs of deceleration in economic activity and high and widespread inflation continue to distinguish the international scenario” with “European prospects appear to be progressively worsening”.
Istat notes this in its monthly Note. In the second quarter, the Institute of Statistics continues, “the Italian GDP marked a marked economic acceleration, summing up a positive contribution from domestic demand (gross of inventories) and a negative contribution from net foreign demand. The acquired growth is equal to 3.4%. But “possible declines in manufacturing activity are expected in the coming months”, and “the increase in the trade deficit, the spread of inflation and the marked worsening of consumer confidence represent downside risks for the economic trend”.
The dynamism of economic activity was reflected on the labor market which in June registered a widespread improvement with a carry-over effect on the entire second quarter. The increase in employment compared to the previous month (+ 0.4%, equal to + 86 thousand units), driven by the component of permanent employees (+ 0.8%, + 116 thousand units), led to employment rate at its highest since 1977 (60.1%) and was accompanied by a reduction in both unemployment (-0.2%, -4 thousand units) and inactive people aged between 15 and 64 (-0.7%, -91 thousand).
The outlook for employment in the coming months they show a substantial stabilization with a more accentuated dynamism in some service sectors, underlines the Institute of Statistics. In fact, in July, the expectations on employment on the part of companies still maintain a favorable orientation, “marking a significant improvement both in construction and in market services, while among manufacturing companies there is a stabilization in comparison with the average of the second quarter “.
Inflation, on the other hand, continues to weigh on the outlook. “Uncertainty and caution continue to characterize the expectations of consumers and businesses also in July about the evolution of inflation. The average expectations of those who expect an increase in prices in the coming months rose slightly (28.6 in July from 27.5 in June).
Among the entrepreneurs who produce goods for final consumption, those prevail which provide for reductions in their price lists of
sale”, Istat.