Wainwright Marks Management - Italian Business Sentiment Declines
January 16, 2019 Business News(PRLEAP.COM) A recent survey conducted by the Bank of Italy revealed that business sentiment about the country's economic outlook declined in all areas.
Analysts at Wainwright Marks Management say the survey indicated that economic and political turmoil were taking their toll on Italian businesses.
The survey showed that uncertainty over the future of Italy's economy increased due to economic and political problems. Gauges of current demand in Italy's economy also showed a slight decline while short term expectations for local and international demand decreased slightly but remained favorable.
At the end of last year, the Italian government met with disapproval from the European Union over its proposed budget for 2019 and was forced to revise its financial targets at the eleventh hour.
Wainwright Marks Management analysts say the tense negotiations with the EU caused a surge in Italy's borrowing costs.
Italy's manufacturing output declined by more than anticipated in November, fueling concerns that the Euro zone's third biggest economy could slide into a recession after a contraction in the third quarter.
Germany, Spain and France followed the trend and released similarly disappointing figures earlier this month.
Wainwright Marks Management analysts say that, according to the survey, consumer price inflation expectations in Italy had also decreased significantly with Italian businesses anticipating prices to rise at a much slower pace than previously predicted.