Pessimism Grows Among Italian Businesses

MILAN (Reuters) – Pessimism about the economic outlook has increased among Italian businesses as worries about an international trade war weigh on sentiment, as reported by the Bank of Italy in a survey published on Tuesday.

U.S. President-elect Donald Trump has threatened to impose hefty tariffs on imports from Europe, China, and other countries, stoking concerns over trade disputes.

The percentage of Italian firms reporting negative assessments in the fourth quarter rose to 30% from 21% in the central bank’s previous quarterly survey.

The share of businesses indicating an improvement remained almost unchanged at 5% from 6%.

The unfavourable outlook is still affected by economic and political uncertainty and, to a lesser extent, by fears over energy commodity price trends and, especially among exporting companies, over international trade policies. The survey did not elaborate on specific political concerns weighing on businesses.

The Bank of Italy’s poll also showed that businesses expect inflation to stand at 1.5% in 12 months, down from 1.7% in the previous survey. According to the latest figures, EU-harmonised inflation in Italy stood at 1.4% year-on-year in December.

The central bank’s survey was conducted from November 20 to December 12 among Italian industry and services companies with at least 50 employees.