According to the survey conducted in March 2018 among Italian firms with 50 or more employees, opinions regarding the general state of the economy continue to be positive, though slightly less so than in the previous survey, especially in the construction sector. While they remain at historically high levels, overall assessments of current demand have deteriorated, particularly as regards the domestic component; demand expectations in the next quarter have instead continued to strengthen.
Consumer price inflation expectations are still moderate, though they are up slightly over all time horizons. For the next twelve months, firms in industry excluding construction and in services expect the trend in their sales prices to stabilize; construction firms instead expect prices to grow at a faster pace.
Firms essentially confirmed their investment plans for the current year as reported in the last quarter, with positive assessments, albeit less favourable, on investment. Employment expectations are improving, especially for construction firms.
