Bloomberg News

Italian Business Confidence Fell in October as Pessimism Spreads

November 04, 2011

Oct. 26 (Bloomberg) -- Italian business confidence fell to the lowest in October amid concern that austerity measures and Europe’s sovereign-debt crisis will weigh on economic growth.

The manufacturing-sentiment index dropped to 94, from 94.5 in September, Rome-based national statistics institute Istat said today. Economists had predicted a reading of 94, according to the median of 14 estimates in a Bloomberg News survey.

The mood among executives mirrors Italian consumers’ pessimism as Prime Minister Silvio Berlusconi implements spending cuts and tax increases to shield the country from Europe’s debt crisis. Italian consumer confidence unexpectedly fell to the lowest in more than three years in October amid concern about the effects of the two packages of deficit cuts approved since July totaling about 100 billion euros ($139 billion).

--Editor: Andrew Davis

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