ROME, July 10 (Xinhua) -- A survey by the Central Bank of Italy on Monday showed that medium and large-sized firms nurture positive expectations on growth and inflation for the second quarter of 2017 and next year.
The survey of Italian companies with 50 or more employees was conducted in June. Firms in all sectors indicated expectations of "an increase in demand for their products," the Bank of Italy stated. "Positive assessments also prevail for the first time since last year in construction, driven by the non-residential sector."
Expectations of consumer price inflation, possibly influenced by a temporary price increase in April, have also risen, according to the survey.
More specifically, the central bank said companies expected inflation to reach 2013 levels later this year: up to 1.6 percent in six months, 1.7 percent in 12 months, and 1.9 percent in two years.
In the longer term, firms forecast prices would increase up to 2.0 percent in three to five years. Overall, Italian medium and large-sized firms were confident business conditions would improve in the next quarter of the year, and expected a better outlook for demand.
However, they did not think such improvement in demand would put a significant pressure on their selling prices.
"Firms estimate their own selling prices will increase over the next 12 months at a quicker pace than recorded in the previous survey (in March 2017), but will remain subdued," the report read. Their assessment of the investment conditions in the country also "markedly improved."
The survey further noted investment expenditure for 2017 was expected to increase in all productive sectors compared to 2016, and especially in the second quarter of this year.
Forecasts on employment levels improved as well, in particular in the industry sectors (except construction), according to the central bank.
The survey involved 1,014 medium and large-sized firms overall, including 379 in industry, 423 in services, and 212 in construction.
A single purchase
