Confidence in the Italian manufacturing sector deteriorated unexpectedly in May, data released by statistical office Istat showed Monday.
The manufacturing confidence index dropped to 86.2 in May from 89.1 in April, while economists expected the index to remain unchanged. The sub-indicators of production and new orders decreased during the month, while the measure of inventory increased modestly.
At the same time, the construction confidence index decreased to 81.8 in May from 83.7 in the previous month. The measures on orders and construction plans improved, while the gauge of employment expectations deteriorated during the month.
Similarly, the indicator of confidence in the Italian service sector dropped to 72.7 in May from 75.8 in April, while the retail confidence index fell to 75.4 from 80.9, the agency said.