Italy's economy demonstrated a year-on-year growth of 0.9% in the second quarter of 2024, according to the latest data from ISTAT. This growth marks a 0.2% increase from the first quarter of 2024, which itself had seen a 0.3% quarter-on-quarter and 0.7% year-on-year growth [5d2745cc]. The positive performance in Q2 was largely attributed to favorable inventory contributions and robust domestic demand, indicating a steady recovery in the Italian economy [5d2745cc].
However, ISTAT has revised its GDP growth forecast for 2024 down to 0.6%, slightly lower than the previous estimate of 0.7% [5d2745cc]. This adjustment reflects ongoing challenges within the economic landscape, despite the recent growth figures. In terms of business sentiment, confidence among businesses rose from 94.3 to 94.7 in August, suggesting a more optimistic outlook among entrepreneurs [5d2745cc]. Conversely, consumer confidence saw a decline, dropping from 98.9 to 96.1 during the same period, highlighting a potential concern regarding household spending and economic sentiment among consumers [5d2745cc].
The mixed signals from business and consumer confidence may indicate underlying uncertainties in the Italian economy, as it navigates through various external and internal challenges. Policymakers will need to address these fluctuations to ensure sustained economic growth moving forward [5d2745cc].