Italy’s revival

Lower oil prices and an improvement in the auto sector have led to a small rebound in the Italian economy. There are concerns that as the boost in the economy from the oil industry fades, so too may much of Italy’s growth momentum. In addition, although we suspect that Italy will continue to produce ‘reasonable data’ in the near term, we suspect that growth may have already ‘topped out’ and it will retreat unless the domestic economy experiences a bigger revival in capital spending trends in the near future.