Italian companies gloomier on outlook amid commerce warfare fears, central financial institution survey exhibits

MILAN (Reuters) – Pessimism in regards to the financial outlook has elevated amongst Italian companies as worries about a world commerce warfare weigh on sentiment, the Financial institution of Italy stated in a survey revealed on Tuesday.

U.S. President-elect Donald Trump has threatened to impose hefty tariffs on imports from Europe, China and different nations, stoking issues over commerce disputes.

The share of Italian companies reporting unfavorable assessments within the fourth quarter rose to 30% from 21% within the central financial institution’s earlier quarterly survey.

The share of companies indicating an enchancment was nearly unchanged at 5% from 6%.

The unfavourable outlook “remains to be affected by financial and political uncertainty and, to a lesser extent, by fears over vitality commodity worth tendencies and, particularly amongst exporting corporations, over worldwide commerce insurance policies,” the survey stated, with out elaborating on what sort of political issues weighed.

The Financial institution of Italy’s ballot additionally confirmed that companies anticipate inflation to face at 1.5% in 12 months’ time, down from 1.7% within the earlier survey. In accordance with the most recent figures, EU-harmonised inflation in Italy stood at 1.4% year-on-year in December.

The central financial institution’s survey was performed from Nov. 20 to Dec. 12 amongst Italian trade and providers corporations with at the very least 50 staff.