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Italy's negative economic cycle continues: ISTAT
Last Updated: 2019-03-07 09:32 | Xinhua
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The Italian economy continued to experience a negative cycle in February, the National Institute of Statistics (ISTAT) stated on Wednesday.

"The surveys signal with no exceptions that the outlook is still negative," the institute said in its monthly bulletin.

According to the latest report, confidence in February worsened among Italian consumers (especially on current situation and future prospects) and among all business sectors but retail trade.

"The leading indicator decreased further, confirming the Italian economy negative cyclical position," ISTAT wrote.

The latest note came a day after the institute confirmed the Italian economy -- the third largest in the euro-zone -- slipped into technical recession in the second half of 2018.

The country's gross domestic product (GDP) dropped in fact by 0.1 percent in the fourth quarter of last year compared to the previous period, ISTAT stated on Tuesday.

The figure was slightly better than the 0.2 percent GDP drop provided as preliminary estimate by the institute in late January.

The Italian economy already registered a negative growth in the third quarter of 2018, and two consecutive negative quarters officially mark a technical recession.

The 0.1 percent GDP decrease in the last three months of 2018 "was due to a negative contribution of inventories, which more than offsets the domestic demand and net exports positive ones," ISTAT explained in the bulletin on Wednesday.

"As for the supply side, the value added in the services increased (by 0.1 percent quarter-on-quarter) while in the industrial sector it continued to decrease (by 0.5 percent)."

The report added Italian sales abroad grew by 3 percent in 2018, in line with major European partners such as Germany and Spain, but less than France, which experienced a more dynamic performance.

Made in Italy exports grew by some 4.1 percent in European Union (EU) markets last year, and by a more moderate 1.7 percent in non-EU markets.

However, ISTAT also highlighted exports to non-EU countries increased by 5.9 percent in January 2019 against the previous month.

Full employment rose by 0.8 percent in 2018 against 0.9 percent in 2017, and "the positive momentum has continued in January, with a slight increase of employment characterized by permanent positions."

Assessing international economic trends in its bulletin, ISTAT noted the global GDP's growth was also facing a slowdown trend.

The "Organization for Economic Co-operation and Development (OECD) composite leading indicators show the economic activity will decelerate further in the coming months," it said.

"In December, according to CPB data, the merchandise world trade in volume decreases by 1.7 percent (following a 1.8 percent drop in November)," it added.

Overall, international trade increased by 3.3 percent in 2018, following a 4.7 percent growth in the previous year.

Finally, the statistical agency forecast a slowdown in economic activities within the euro-zone would last in the coming months.

"In February, the European sentiment indicator (ESI) elaborated by the European Commission reached the minimum value since the half of 2016," ISTAT said.

"The confidence decreased for the third time in a row in the industrial sector, while increasing in services, retail trade, and among consumers. The outlook for the area remains negative."

The main factors contributing negatively were a decline in business confidence, and a slowdown in foreign sales, according to the report.

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