According to the survey conducted between 24 February and 17 March 2023 among Italian industrial and service firms with 50 or more employees, in the first quarter opinions regarding a worsening of the general economic situation became less widespread than in the previous quarter. Firms' expectations of their own operating conditions over the next three months improved as well, driven by the recovery in demand and the easing of the difficulties linked to high energy prices and the sourcing of commodities and intermediate goods.
Assessments of investment conditions continue to be unfavorable overall, but the negative balance has narrowed considerably compared with the previous survey. Capital accumulation looks set to continue in 2023 and employment is expected to expand over the next three months.
Consumer price inflation expectations continued to decrease over all the time horizons considered, to 6.4 percent over a 12-month horizon and 5.3 and 4.8 per cent over the two-year and three-to-five-year horizons, respectively. While firms' selling prices have continued to grow at a fast pace in the last year, for the first time since the end of 2020 firms are pointing to a slowdown over the next 12 months across all sectors except residential housing.
