MILAN, April 6 (Reuters) - The opinion of Italian
businesses on the prospects for the economy improved in the
first quarter of 2023 compared with the previous three months,
the Bank of Italy said on Thursday, as inflation expectations
fell.
In the first three months of the year the percentage of
Italian businesses that expected better economic conditions rose
to 14.9% from 6.3% in the previous three months, the Bank of
Italy said in its quarterly survey.
The percentage of those expecting worsening economic
conditions almost halved to 23.7% from 47%.
Italian Economy Minister Giancarlo Giorgetti said in March
the outlook had brightened since a 0.1% quarterly fall in gross
domestic product at the end of 2022, and the country was likely
to avoid a second quarter of contraction at the start of this
year.
Expectations are less gloomy thanks both to stronger demand
and falling energy prices, the survey said.
In contrast to the fourth quarter of 2022, inflation
forecasts decreased "probably thanks to the strong fall in the
Consumer Price Index seen at the start of the year," the central
bank added.
In February Italian inflation was revised down slightly due
to the energy prices decline but core components accelerated.
Firms' expectations for consumer price inflation in 12
months time fell to 6.4%, compared with 8.1% in the previous
survey. Over a two year horizon the expectation was for a 5.3%
inflation rate, down from 6.7%.
Problems due to sky-rocketing inflation lessened and
employment expectations in the second quarter are positive for
all sectors.
The survey was conducted between Feb, 24 and March 17 among
Italian industry and services businesses with at least 50
employees.
The banking crisis triggered by the U.S. lenders Silicon
Valley Bank and Signature Bank erupted on March 10.
(Reporting by Sara Rossi
Editing by Keith Weir)
