Main results
In 2023, sales for Italian firms with 20 or more employees decreased in industry excluding construction and remained stable in non-financial private services. Headcount employment rose again and the share of firms posting a profit remained high by historical standards. Firms' selling prices slowed, especially in firms in industry excluding construction; the prices of energy goods and production inputs, which had pushed up prices sharply across sectors in the years 2021-22, decreased.
The demand for funding remained weak and firms' assessments point to even tighter credit access conditions, especially with reference to the interest rates applied. Investment spending continued to expand, driven by that of firms in services and in the energy, mining and quarrying sector.
Manufacturing firms' expectations for 2024 suggest a slight increase in sales, a further slowdown in price growth and a contraction in investment spending. Service firms anticipate that production will edge down and investment plans will expand; price growth is expected to moderate further in this sector too, though it would still be higher than in the other sectors, especially in household services.
Construction output grew at a fast pace in both public works and private construction, benefiting from the 'Superbonus' incentives. Following three years of strong expansion, firms expect activity to ebb slightly in 2024.
Turnover of Italian industrial firms excluding construction and non-financial private service firms
(percentage changes)
Notes: Data weighted by population weights and turnover. Values at constant prices calculated based on the average deflators obtained from the survey. Dotted lines indicate firms' expectations for 2024.
Reference period: 2023
