ROME (Reuters) -Italian business and consumer sentiment rose in October, data showed on Tuesday, beating analysts’ forecasts in a boost for the euro zone’s third-largest economy.
National statistics institute ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, rose to 94.3 this month from 93.7 in September.
The sub-index for manufacturing was also higher at 88.3 against 87.4 the month before, against a forecast of 87.5 in a Reuters survey of four analysts.
Morale also rose in the retail and construction trade, but eased in the service sector.
Consumer confidence climbed in October for a second consecutive month to 97.6 from 96.8 in September, outpacing a median forecast of 97.0 in a Reuters’ poll.
“The increase was supported by expectations regarding both the general economic situation and household finances, as well as by assessments of the ability and opportunity to save and to purchase durable goods,” ISTAT said in a statement.
The improved business and consumer sentiment came against a background of renewed economic headwinds in Italy.
The economy contracted by 0.1% in the second quarter from the previous three months and the government this month trimmed its growth estimates for this year and next to 0.5% and 0.7%, respectively, citing the impact of US trade tariffs.
However, both Fitch and DBRS Morningstar have upgraded Italy’s credit rating over the past two months, citing the country’s political stability and improving public finances.
(Reporting by Crispian Balmer, editing by Alvise Armellini)
