Italy's economy continues to strengthen in November: ISTAT

ROME, Dec. 5 (Xinhua) -- Italian economy kept strengthening in November, supported by a positive trend in the capital accumulation process, the National Institute of Statistics (ISTAT) said on Tuesday.

"In a favorable international environment... the production activity remains positive in presence of a slowdown in services growth," the agency wrote in its monthly report.

The labor market was stable, while a downturn in labor productivity would reflect the high level of employment that characterizes the economic recovery phase, according to ISTAT.

Leading indicators in November "continue to show an upward pace, strengthening the short-term outlook," ISTAT specified.

In the third quarter of the year, Italy's gross domestic product (GDP) grew by 0.4 percent compared to the previous quarter, "consolidating the expansive phase registered in the previous months," stated the office.

Such growth was mainly driven by the domestic demand, which contributed by 0.7 percentage point overall. More specifically, the recovery in the capital accumulation process contributed 0.5 percent, and the household consumption 0.2 percent.

Changes in inventories in the Q3 dropped by 0.5 percent on the quarterly basis, while the net foreign demand rose by 0.2 percent, following a marked increase in both imports and exports (by 1.2 percent and 1.6 percent respectively), according to ISTAT.

The manufacturing value-added rose by 1.6 percent, while a deceleration phase was confirmed for the services sector, whose value-added registered a 0.1 percent increase only.

Looking at final consumption expenditures in the third quarter, the statistical office said its growth was mainly driven by a 0.3 percent rise in household consumption over the previous quarter, and to a lesser extent, by a 0.1 percent increase in the public administrations expenditures.

Finally, the rates of employment, unemployment, and inactivity in October remained unchanged compared to September, ISTAT wrote in its report.

In September, the agency had registered employment at 58.1 percent, unemployment at 11.1 percent, and inactivity at 34.4 percent. "The positive current phase of the labor market is accompanied by the strong increase in hours worked (by 0.7 percent in October over September)," ISTAT said.

Overall, the agency stated that "expectations about employment are still positive in the manufacturing and services sectors, while decrease in the construction." Enditem