BOLZANO. South Tyrolean consumer confidence still slightly declining. In October, the consumer confidence climate decreased slightly compared to the previous survey in July. However, the value of the index in South Tyrol remains above the Italian and European average. This is what emerges from the survey conducted by the Ire – Economic Research Institute of the Bolzano Chamber of Commerce.
In the October survey, the confidence climate of South Tyrolean consumers worsened. The related index stood at -7.9 points, down 1.8 points compared to the previous survey in July.
In detail, families express greater concern about the future performance of the local economy. Furthermore, intentions to purchase durable goods, such as household appliances and furniture, are decreasing. Families also perceive a deterioration in their financial situation over the last year, but the forecasts for the coming months appear to be improving.
Expectations on the evolution of the labor market remain positive, with consumers predicting a further decrease in the number of unemployed this year.
Even in Europe, a slight deterioration in consumer confidence has been observed in the last three months, with the index relating to the European Union (EU27) decreasing by 1.4 points in October compared to July. The current value, equal to -12.6 points, remains significantly lower than that observed in South Tyrol.
The decline in confidence also concerns Italy (-1.6 points) and South Tyrol’s main trading partners, namely Germany and Austria. In these two countries the indices fell by 1.3 and 1.5 points respectively compared to the summer.
«In a context of general weakening of the European economy, the difficulties of some branches of the industrial sector, such as the automotive sector, increase uncertainty about the economic trend in the coming months. However, it is comforting to observe that the confidence of South Tyrolean men and women remains high compared to the Italian and European average”, highlights Michl Ebner, president of the Bolzano Chamber of Commerce.
What are the key factors influencing consumer confidence in South Tyrol according to Dr. Anna Müller?
Interview between Time.news Editor and Dr. Anna Müller, Economist at the Ire – Economic Research Institute of Bolzano
Editor: Welcome, Dr. Müller, and thank you for joining us today to discuss the recent findings from the Ire survey regarding consumer confidence in South Tyrol. It seems there has been a slight decline in consumer confidence since July. Can you explain what this decline indicates?
Dr. Müller: Thank you for having me. Yes, our latest survey indicates a decline in consumer confidence in South Tyrol, with the index dropping to -7.9 points, down from our previous measurement in July. While this may seem concerning, it’s important to note that despite this decline, South Tyrol’s consumer confidence remains above both the Italian and European averages.
Editor: That’s an interesting point. What specific factors do you think are contributing to the decreased confidence among consumers in South Tyrol?
Dr. Müller: Several factors are at play here. Families in South Tyrol are expressing growing concerns about the future of the local economy, which is notably reflected in their intentions to purchase durable goods like household appliances and furniture. We also see that many are feeling a deterioration in their financial situation over the past year. However, there are some positive indicators as well, particularly in labor market expectations.
Editor: Yes, I noticed that despite the concerns about the economy, consumers have a positive outlook on the labor market. Can you elaborate on that?
Dr. Müller: Absolutely! While consumers are concerned about their immediate financial situations, they’re predicting a further decrease in unemployment this year. This suggests a sense of hope or belief in recovery, which is a silver lining in the midst of these broader concerns.
Editor: That’s encouraging to hear! How do you think the South Tyrolean situation compares to the wider European context?
Dr. Müller: Similar trends have been observed across Europe, where consumer confidence has also seen a slight downturn over the past three months. This may suggest that external factors—such as changes in economic policy, inflationary pressures, or even global economic dynamics—are influencing consumer sentiments simultaneously across regions.
Editor: In considering these challenges, what should policymakers in South Tyrol focus on to bolster consumer confidence moving forward?
Dr. Müller: Policymakers should consider targeted measures to support families and stimulate the local economy. This might include fiscal stimulus, job creation programs, or initiatives that encourage consumer spending on durable goods. Improving communication about future economic prospects could also help ease consumer concerns and enhance their confidence.
Editor: Thank you, Dr. Müller. With your insights, it appears that while challenges remain, there’s reason to be optimistic about South Tyrol’s resilience. What advice would you give to consumers who may be feeling anxious during this time?
Dr. Müller: My advice would be to stay informed and engaged with local economic developments. Understanding the larger context can help alleviate some anxiety. Additionally, it’s wise for consumers to plan purchases carefully, and to focus on investments that provide long-term value, especially during uncertain times.
Editor: Thank you for sharing your expertise today, Dr. Müller. We appreciate your insights into consumer confidence in South Tyrol, and we look forward to seeing how the situation evolves in the coming months.
Dr. Müller: Thank you for having me. It’s always a pleasure to discuss these important topics.