According to the survey conducted between 25 May and 17 June 2020 among Italian firms with 50 or more employees, assessments of the general economic situation in the second quarter of 2020 worsened compared with the previous survey conducted in March.
Firms reported a sharp drop in current demand. Short-term sales expectations are instead less pessimistic, as are those on their own operating conditions. The majority of firms indicated that their turnover has suffered a reduction owing to the pandemic and expect that their business will return to the levels prevailing prior to the health crisis in slightly less than one year; only 3 percent of firms think that they will not be able to return to turnover levels equal to those registered prior to the spread of Covid-19.
Firms' assessments of credit access conditions worsened slightly compared with the previous quarter. About half of the companies requested liquidity support under the measures introduced by the latest government decrees, and were able to access it in full or in part in 70 per cent of cases.
Assessments of investment conditions point to a worsening. Firms' spending plans suggest a reduction in investment in 2020, mainly due to the fall already recorded in the first half of the year. Employment expectations remain unfavourable in manufacturing and in services, while they have turned positive in the construction sector.
Consumer price inflation expectations have decreased slightly over all time horizons. Firms' selling prices slowed further compared with the previous quarter and expectations for the next twelve months suggest very modest increases.
