Italy

We have all become addicted to the LME and, as never before since April, our daily lives have become even crazier.

Italy’s industrial production in May exceeded even the most optimistic forecasts, growing by 0.5% compared to the previous month to record its first increase of 2024; this followed three months of red figures and no percentage change in February.

Meanwhile, Italy’s Minister of Enterprise and Made in Italy, Adolfo Urso, has opened up to a negotiated solution between the EU and China regarding the application of duties on electric car imports. The minister has toned down the belligerence of recent months, which placed Italy among the countries favouring tariffs. At this point, the real priorities appear to be: relaunching an efficient and rules-based multilateral trading system in which the World Trade Organization acts as guarantor; supporting international foreign investments; and strengthening the resilience of global value chains.

Consumption showed a recovery in June: after declining 0.6% in May, the Confcommercio Consumption Indicator recorded a 0.9% year-on-year gain the following month, driven by spending on goods and services for mobility. Within the sector, consumption for cars and air transport recorded increases of, respectively, 25.7% and 12.7%. In the second quarter of 2024, growth slowed in services, industry continued to decline (despite the recovery in May) while investments and exports held their ground but were not outstanding.

Meanwhile, the European Central Bank cut is still not visible in rates for families and businesses.