Italy’s economy experienced 0.9% growth in the second quarter of this year compared to the same period in 2023, as reported by the National Institute of Statistics (ISTAT) on Monday.

Seasonally and calendar-adjusted data shows a 0.2% increase in gross domestic product (GDP) from the first quarter of this year.

This data paints a moderately optimistic picture of the Italian economy, given that the first quarter saw 0.3% growth from the previous quarter and a 0.7% increase on an annual basis​.

That said, ISTAT slightly revised its carry-over annual GDP growth forecast for this year down to 0.6% from the 0.7% estimated in July. 

This adjustment reflects updated economic data and projections for the coming year​, Xinhua news agency reports.

Furthermore, key factors leading to the growth in Italy’s economy in the second quarter were the positive impact of inventories, which outweighed the negative effects of net foreign demand, as well as the domestic demand components “thanks to the positive contribution of both household consumption and investment,” according to the statistics agency.

In addition, a recent report from ISTAT revealed a modest increase in business confidence among companies in Italy, with the business climate index rising from 94.3 to 94.7 in August. 

This marks the first uptick in the index after a four-month decline spanning from April to July. The increase in business confidence reflects a cautiously optimistic outlook among Italian companies regarding the economic environment.

Conversely, the same report noted a decline in Italian consumer confidence, which fell from 98.9 to 96.1 in August, marking the first decrease since May, signalling concerns among consumers about their economic prospects and financial stability.

Overall, while businesses are showing signs of renewed confidence, the decrease in consumer sentiment suggests mixed feelings about the country's economic trajectory.