Global| Sep 10 2007Italy’s GDP Snakes Below 2% Year-over-year
Summary
GDP slows, private consumption holds up, capital formation slows. GDP is slowing in Italys quarterly and annual framework. Private consumption has been holding up and even improving slightly, but remains at a subdued pace around the [...]
GDP slows, private consumption holds up, capital formation slows.
GDP is slowing in Italy’s quarterly and annual framework. Private consumption has been holding up and even improving slightly, but remains at a subdued pace around the two percent mark. Capital formation has slowed. The trade gap is subtracting from GDP in the recent quarter as exports fell by more than imports. In July Germany reported a sharp weakening in its industrial orders from overseas. This export weakness reported by Italy may be part of that same signal. Domestic demand in Italy is up in the quarter but only holding steady Yr/Yr at a 2.2% pace, a bit of reduced pace from late last year.
| Consumption | Capital Formation | ||||||||||
| GDP | Private | Public | Total | Construction | Machinery | X-M:Bil.Euro | Exports | Imports | Domestic Demand |
||
| % change Q/Q; X-M is Q/Q change in Blns of euros | |||||||||||
| Q2-07 | 0.5% | 2.4% | 0.6% | 0.4% | -5.0% | -1.1% | -0.6 | -4.0% | -1.1% | 1.3% | |
| Q1-07 | 1.1% | 2.9% | 0.4% | 1.6% | 6.3% | -0.1% | 0.9 | -0.3% | -4.3% | 0.0% | |
| Q4-06 | 4.6% | 0.8% | 0.0% | 8.5% | 11.9% | 7.1% | 1.9 | 18.0% | 7.2% | 2.1% | |
| Q3-06 | 1.2% | 2.5% | 0.8% | -2.2% | 1.4% | -0.6% | -3.4 | -7.3% | 9.0% | 5.5% | |
| % change Yr/Yr; X-M is Yr/Yr change in Gap in Bil of euros | |||||||||||
| Q2-07 | 1.8% | 2.2% | 0.4% | 2.0% | 3.4% | 1.3% | -1.2 | 1.1% | 2.6% | 2.2% | |
| Q1-07 | 2.3% | 2.0% | 0.2% | 2.5% | 5.8% | 1.3% | 0.4 | 3.6% | 3.1% | 2.2% | |
| Q4-06 | 2.8% | 1.9% | -0.3% | 3.9% | 4.6% | 3.6% | 0.3 | 6.0% | 5.5% | 2.7% | |
| Q3-06 | 1.6% | 1.3% | -0.4% | -0.1% | 0.3% | -0.3% | -1.6 | 3.1% | 5.1% | 2.1% | |
| 5-Yrs | 1.0% | 1.2% | 1.0% | 1.4% | 2.3% | 1.0% | na | 1.3% | 2.1% | 1.2% | |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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