Survey on Inflation and Growth Expectations - 2018 Q4

According to the survey conducted between 25 November and 16 December 2019 among Italian industrial and services firms with 50 or more employees, opinions regarding the general economic situation and firms' own operating conditions have deteriorated slightly, reflecting worsening assessments in the service sector. Demand, while still weak, has improved also thanks to the performance of the foreign component reported by manufacturing companies.

Among firms, those planning to increase their investments in 2020 continue to account for the highest share, though to a lesser extent than in the last year on average. Assessments of investment conditions remain unfavorable. Overall, firms expect virtually stable employment in the next quarter.

Consumer inflation expectations have been revised slightly downwards across all time horizons and remain at low levels. For the next 12 months, firms expect modest growth in their own prices, at a pace barely above that achieved in the last year.