Italy's retail sales drop, but consumer confidence surges

Italy's retail sales dropped by 1.2 percent in 2014 compared to 2013, but there are signs of change, as consumer confidence jumped this month to a level not seen in many years, the country's national statistics institute said on Thursday.

Istat revealed that in December alone, the seasonally adjusted retail trade index decreased by 0.2 percent compared with November, both for food goods and for non-food goods.

The average of the last three months of 2014 compared to the three months preceding this period fell by 0.1 percent. Smaller stores were hit harder than large retail chains, Istat noted.

Consumer confidence, however, reached this month 110.9 points, the highest level since June 2002, Istat also added. The increase, up from 104.4 in January, is explained by a growth in all categories, namely economic, personal, current and future, the institute said in a statement.

For example, those surveyed seem to have more confidence in the labour market, as the balance tipped concerning expectations on unemployment from 40 to 10, the statement noted.

Istat also reported a leap in business confidence in their business surveys, with February's climate index growing to 94.9 from 91.6 in January, a level not recorded since June 2011.

The latest economic estimates have predicted the Italian economy in 2015 would see small positive signs of recovery after registering no growth since the second quarter of 2011. Endit