Italian Manufacturing Confidence Rises More Than Expected In November

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Italy's manufacturers' confidence rose more than expected in November, survey data released by economic think tank ISAE showed Thursday.

The business confidence index rose to 78.8 from October's reading of 77.4, while economists had forecast the index to log 78. The current level of the index is the highest since September 2008. The increase was due to a recovery in short-term expectations on production and the improvement in current state of orders.

"Today's data show that the trend of recovery in factory activity remains in place," UniCredit economist Marco Valli said. "However, it's difficult to assess prospects for industrial production in 4Q based on sentiment indicators." The economist assumes that there will be a downward adjustment in manufacturing output in the fourth quarter. The extent of the deceleration - if not outright decline - will be clearer only after the October industrial production report, which is due on December 10.

A separate survey conducted for measuring Italian retailers' confidence revealed that sentiment rose to 102 in November from 93.8 in October. The think tank said retailers expressed strong optimism about future sales volume and about current trend of business.

Confidence also improved among Italian service providers. The confidence indicator climbed to minus 2 from minus 7 recorded last month. The improvement was led by favorable expectations about orders and the economy as a whole.

Italy's manufacturers' confidence rose more than expected in November, survey data released by economic think tank ISAE said Thursday. (Market News Provided by RTTNews)