Data published by the National Institute of Statistics (ISTAT) showed that business confidence unexpectedly improved in November, reaching the highest level since August, in a boost for Prime Minister Giorgia Meloni's new right-wing government. This week she passed an expansionary 2023 budget with some 35 billion euros of extra spending and tax cuts.
The business confidence index increased to 102.50 points from 100.70 points in October. Economists had expected a decline to 99.6 points. Meanwhile, the consumer confidence index rose to 98.1 points from 90.1 points in October. Consensus estimates suggested an increase to only 91.0 points. The positive development was mainly due to the improvement of both the economic and the future confidence climate (from 77.6 to 95.2, the first and from 88.8 to 102.8, the second one). However, also the personal climate and the current one rose considerably (from 94.3 to 99.0 and from 91.0 to 94.9, respectively).
ISTAT also reported that the economic sentiment indicator increased in November to 106.4 points from 104.7 points in October. The confidence climate in manufacturing improved to 102.5 points from 100.7 points in October, while the confidence climate in construction fell to 151.9 points from 157.5 points. The market services confidence index rose to 98.8 points from 96.0 points in October, and the retail trade confidence index rose to 112.2 points from 109.0 points.