According to the report from the National Institute of Statistics (ISTAT), consumer confidence fell sharply in June and was below economists' forecasts, which was due to a drop in all components. The consumer confidence index fell to 98.3 points from 102.7 points in May. Economists had expected a decline to only 102.5 points. Meanwhile, the economic climate plunged from 103.6 to 93.9, the current one collapsed from 104.6 to 97.9, the personal one declined from 102.4 to 99.8, and, finally, the future one slipped from 99.8 to 98.8.
The data also showed that the composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, rose to 113.6 from 111.0 in May. The manufacturing confidence index rose in June to 110.0 from 109.4 in May, while the construction confidence index rose to 159.7 from 158.7. The confidence index in the market services sector increased to 109.1 from 103.8 in May, and the confidence index in retail trade rose to 107.2 from 105.8.
"There is a widespread worsening of all variables that make up the calculation of this indicator, with the exception of those referring to savings," ISTAT said.
But while the Italian economy still faces many headwinds, it seems to be holding up better than expected a few months ago when some economists were forecasting a recession triggered by surging prices.