Business Confidence Drops Sharply in Italy

Business confidence dropped sharply in Italy this month, the national statistics agency said on Monday, with its closely-watched index falling to 74.6 points from 78.5 points in March.

The index showed that businesses in the manufacturing, construction, services and trade sectors were downbeat about the outlook in April, after a two-month political stalemate which thwarted attempts to revive growth in the recession-hit country.

The monthly results were released a day after the swearing in of Italy's new coalition government, which brought the deadlock to an end and has promised to act fast to enact measures to help struggling businesses and the unemployed.