Italian GDP Prelim QoQ: 0.5% (Forecast 0%, Previous 1.1%)

Italian GDP Prelim -

QoQ: 0.5% (Forecast 0%, Previous 1.1%)

YoY: 2.6% (Previous 4.7%)

A surprise beat by the Italians, and another nail in the coffin for the early ECB pivot

Reuters Note:

Italian GDP has exceeded expectations in each of the first three quarters of this year.

However, looking ahead, the outlook has been clouded by sky-high, energy-driven inflation , exacerbated by the war in Ukraine, which has sapped business and consumer confidence, crimped investments and hit families' spending power.

Rome is officially forecasting full-year growth of 3.3% this year, slowing sharply to just 0.6% in 2023. Following the unexpected growth in the third quarter, the 2022 forecast looks likely to be exceeded.