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Italy’s
order trends are not as clear as the slowing in some other Euro area
countries. True, the 3-month growth rates are lower and sharply lower
especially for foreign orders. But the chart on the left shows how
erratic foreign orders have been. Domestic orders that have slowed by
less are negative and in a clearer slowdown mode. On balance Italy’s
pattern looks as though its showdown is of domestic, not of foreign,
origin. Domestic orders have been weak and are now in negative
territory. Sales, which have been relatively firmer and even accelerated
in the recent three months, fell sharply in September after a strong
rise in August. Orders give us a clearer picture of slowing growth in
Italy. The foreign sector is unclear. But domestic orders are sending a
pretty clear message of slowdown in progress.
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