According to the survey conducted between 25 August and 15 September 2022 among Italian industrial and service firms with 50 or more employees, opinions regarding the general economic situation deteriorated further in the third quarter. Firms' expectations of their own operating conditions in the next three months have become more pessimistic, reflecting above all the uncertainty attributable to economic and political factors and developments in commodity prices. For almost one third of companies, the difficulties connected to the cost of energy were greater than in the previous quarter. The positive impact of demand, which had supported economic activity in the last few quarters, has waned and the expectations of firms do not point to a recovery in the coming months.
The worsening opinions on investment conditions were associated with a moderate downward revision of investment plans for 2022 by firms in industry excluding construction and in services, whose spending, however, is expected to continue to grow. The expansion of employment will likely continue, albeit at a slower pace.
Consumer price inflation expectations have risen further, exceeding 6 per cent over a twelve-month horizon and hovering around 5 per cent over more distant horizons (two-year and three-to-five-year horizons). The dynamics of firms' selling prices have also strengthened and should remain strong over the next twelve months, driven by rising production input prices and higher inflation expectations.
