Financial thoughts

Consumer confidence in Italy unexpectedly rose in December to the highest in more than seven years as Italians grew more optimistic about purchasing durable goods after Europe’s fourth-biggest economy emerged from a recession.

The Isae Institute’s consumer confidence index rose to 113.7, the highest since July 2002, from 112.8 in November, the Rome-based research center said today in an e-mailed statement. Economists had forecast a drop to 112.7, the median of 12 estimates in a Bloomberg News survey showed.

Italy’s economy snapped five quarters of contraction and expanded 0.6 percent in the third quarter and the recovery is gaining momentum as consumer spending and exports pick up. Confindustria, Italy’s employers lobby, this month raised its forecast for 2010 growth to 1.1 percent from 0.8 percent, saying the recovery “will not derail.”

The gain in Italian optimism contrasted with growing pessimism in Germany. Consumer confidence in Europe’s biggest economy fell for a third month as households became more concerned about job security and rising energy prices, a separate report said yesterday. Consumer confidence in France fell in December for the first time in nine months and spending by French consumers declined in November, a separate report said today.

Italians were more optimistic about their personal situation and their ability to buy durable goods such as cars and appliances, today’s report said.

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