According to the survey conducted between 26 November and 17 December 2018 among Italian firms with 50 or more employees, opinions regarding the current general economic situation worsened markedly in all sectors of economic activity, in part owing to the increase in uncertainty due to economic and political factors occurring during the survey field period. Overall assessments of current demand also worsened, but to a lesser extent; domestic and foreign demand short-term expectations became less favourable but remained positive overall.
The balance between expectations of higher and lower nominal investment expenditure in 2019 compared with 2018 is positive, but narrower than that observed for investment plans in the recent past. Employment expectations remain moderately favourable among firms in industry excluding construction and, to a lesser extent, for those in services. For firms in the construction sector they continue to be negative overall.
Consumer price inflation expectations decreased slightly over all time horizons. For the next 12 months, firms in industry excluding construction expect their own prices to grow at a slower pace compared with the previous survey. The costs of production inputs together with changes in financing conditions represent the main factor spurring the increase in own prices, while demand pressures are virtually nil.
