ROME (Reuters) – The Italian economy could enter into recession during the fourth quarter of this year, the chief economist of industrialist lobby Confindustria, Andrea Montanino, told Reuters.
Italy’s economy contracted in the third quarter for the first time in four years due to falling domestic demand, statistics bureau Istat said on Friday, cutting a preliminary estimate of stagnant gross domestic product.
“It’s a worrying figure that could lead us to technical recession in the last quarter of the year. We are forecasting a flat Q4 with downside risks due to falling confidence indices,” Montanino said.
An economy is said to be in recession when you get two consecutive quarters of negative growth.
Morale among Italian manufacturers fell in November from the previous month to its lowest level in almost two years as expectations for future production declined.
Consumer confidence fell in November to its lowest level since May.
(Reporting by Giselda Vagnoni; Editing by Crispian Balmer)