The assessments on the general economic situation and on its operating conditions in the fourth quarter of 2022 have become less negative than in the previous period. This is what emerges from the survey conducted by the Bank of Italy between 22 November and 14 December 2022 among Italian industrial and service companies with at least 50 employees.
According to Bankitalia, “Expectations on demand in the coming months, both total and foreign, have in fact improved, even if companies continue to report difficulties connected with economic and political uncertainty and with high energy prices”.
Capital accumulation is expected to continue in 2023. As Bankitalia explains, “the assessments of worsening investment conditions remain far higher than those of improvement, but the negative balance has halved compared to the previous survey. Employment is expected to continue to grow in the first quarter of the year.
Expectations on consumer price inflation increased further, reaching 8.1 per cent over 12 months and reaching 6.7 and 5.7 per cent respectively over 2 years and between 3 and 5 years. The dynamics of the prices charged by businesses should remain sustained in the next 12 months, albeit decreasing in construction and above all in industry in the strict sense. It would still be driven mainly by higher input prices and higher inflation expectations.