Economics

Italy Plunged Into Recession by Investment, Consumer Slump

  • Economy contracted 12.8%, final second-quarter data show
  • Household spending fell sharply, transport investment dropped

Passengers enter the Duomo metro station in the Cathedral square in Milan.

Photographer: Bloomberg/Bloomberg
Lock
This article is for subscribers only.

Italian companies slashed investment and consumers cut back on spending during the coronavirus lockdown in the second quarter, sending the economy into a record contraction.

Figures from statistics office Istat showed household spending fell 11.3% in the period, and exports dropped 26.4%. Investment plunged 14.9%, with transport investment down about 20%. The economy shrank 12.8% in the three months, slightly worse than an initial estimate.