Italy July consumer confidence 95.8 vs 99.9 in June - ISAE UPDATE

07.22.08, 5:34 AM ET

MILAN (Thomson Financial) - Italy's consumer confidence index fell in July to 95.8 from 99.9 in June, the lowest level since Nov. 1993, according to the research institute ISAE.

The June figure was revised down slightly from 100.0.

Economists polled by Thomson Financial News were expecting the index to decline to 99.1 in July.

'While the correlation between sentiment and private spending tends to be loose, consumption fundamentals (the labor market in particular) are deteriorating rapidly, paving the way for sluggish consumer spending in coming quarters with increasing risks of an outright contraction,' Marco Valli, chief Italian economist at UniCredit SpA's unit HVB, wrote in a note.

The bank said it expects Italian GDP growth to be nil in the second quarter and 'flattish' in the second half of the year.

philip.webster@thomsonreuters.com