ROME, April 29 (Reuters) – Morale among Italian consumers and businesses fell steeply in April, data showed on Wednesday, boding ill for the prospects of the euro zone’s third largest economy, among the hardest-hit by the energy shock due to the Iran war.
National statistics institute ISTAT’s consumer confidence index declined to 90.8, the lowest level in at least three years, from 92.6 the previous month, below a median forecast of 91.2 in a Reuters’ poll of six analysts.
The composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, decreased to 95.2 from 97.3 in March, with services and construction posting the steepest drops.
The sub-index for manufacturing fell to 87.9 from 88.7 the previous month, ISTAT said.
Giorgia Meloni’s government last week cut its economic growth outlook to 0.6% for this year and next, reflecting surging energy prices and turmoil in the Middle East, from previous targets of 0.7% and 0.8% respectively.
The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
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