Manufacturers were more optimistic in August compared to previous months: the confidence index, calculated by the ISAE (Economic Research Institute) was at 95.3 for August, almost nine points above the July figure, and near the figure of September 2002.
The improvement was due to a strong decrease in finished product reserves, which probably signals a trend for more demand. This hypothesis was confirmed by the increase in short-term expectations on production. Orders show signs of recovery, both on the domestic and international fronts, in particular in investment goods.
Favourable signals also come from orders and employment, and more in general, from the short term prospects of the Italian economy, characterised by a modest increase of inflation.
