Italian business morale takes a dip

Italian business confidence sank by more than expected this month, according to data from the ISTAT office released yesterday. The index measured 101.3 in May, from a downwardly revised 102.6 in April. “It is important for Italy that foreign orders stay on an upward trajectory,” said Fabio Fois of Barclays Capital. “The economic recovery has been led by exports contributions. Going forward, the outlook for the euro will be key. In fact, Italy has one of the largest export elasticities to its exchange rate,” Fois added.