Figures from the National Institute of Statistics (ISTAT) showed that retail sales fell by 0.1% in January after falling by 0.2% in December (revised from -0.1%). Economists had expected an increase by 0.2%. Sales of non-food products remained unchanged compared to December, while food sales fell by 0.1%. Meanwhile, over the three-month period (through January), retail sales rose by 0.3%.
On an annual basis, retail sales increased by 1.0% in January, accelerating sharply compared to December (+0.2%). It was the 34th consecutive increase. Consensus estimates suggested an increase of 0.3% per annum. Food sales grew by 2.4%, while non-food fell by 0.2%.
The data also showed that in January, large-scale distribution was up 1.4% per annum, small-scale distribution grew by 0.5% per annum and non-store retail sales dropped by 0.4% per annum. Meanwhile, online sales grew by 1.0% compared with January 2022.
Last month, the European Commission revised Italy's GDP growth forecast, saying that Italy is losing momentum and, by 2025, will be again ranked last in the EU for growth rates. Compounded by a deteriorating general environment, forecasts for Italy are also downwardly revised by 0.2%, to 0.7% for this year. "For 2025, the picture ahead is mixed. The Italian economy will grow by half a 0,5%, with GDP expected to expand from 0.7% to 1.2%, the lowest growth in the entire eurozone and even the European Union, albeit on par with Germany. It will still be at the last," the European Commission added.