The Italian economy grew by 0.3 per cent month on month (MoM) and by 0.7 per cent year on year (YoY) in the first quarter (Q1) this year. The gross domestic product (GDP) carry-over for 2024 is 0.6 per cent, official statistics show.

The expansion was supported by household’s consumption and investments, which provided a positive contribution of 0.2 and 0.1 percentage points respectively, while the contribution of public administration expenditure was zero.

There was a sharp reduction in imports during the quarter (minus 1.7 per cent) and an expansion of exports of goods and services (plus 0.6 per cent).

The seasonally-adjusted Italian industrial production index recorded a month-on-month (MoM) increase in May, interrupting the downward trend of the previous two months, the statistics show.

However, in the March-May average, the production index fell by 1.6 per cent compared to the previous three months. The slowdown is widespread across all main industry groups, with the exception of the energy sector (plus 0.1 per cent), and very marked for capital goods (minus 3.2 per cent).

Although between February and April, trade in goods in value increased compared to the previous three months, the trend remained weak in comparison with the previous year.

Between March and May, the level of employment increased by an average of 0.6 per cent, broad-based between permanent employees, self-employed workers, both sexes and all age groups, with the exception of 25-34 year olds.

The employment rate in May was 62.2 per cent, decreasing by 0.1 percentage point compared to the April figure.

Inflation in the country, at below 1 per cent, continued to be at the lowest levels among euro area countries.

The harmonised index of consumer prices (HICP) in the first six months this year rose by 0.9 per cent year on year (YoY), 1.6 percentage points below the euro area average.

In June, business confidence deteriorated for the third consecutive month, while consumer confidence improved in all components of the index.

Goods trade remains sluggish, particularly with the European Union (EU), according to a release from the official statistics agency.

Exports of goods since the beginning of the year have shown moderate growth: considering the first four months of 2024, the YoY increase in value was 0.3 per cent, with an increase in direct sales to non-EU markets (plus 2.3 per cent) contrasted by a decline to EU countries (minus 1.4 per cent).

In manufacturing, judgments on orders are down, while inventories of finished products are expected to increase; expectations on the level of production are also down, albeit to a lesser extent.