The tax credit in Italy is finally bearing fruit: In spring 2024, the go-ahead was given by the government for companies that make investments in the two-year period 2024 and 2025 in connection with the “Plan Transition 5.0” to receive tax benefits. The aim of the measure is to support the digital and energy transformation process of companies. The main focus is on reducing energy consumption. The tax credit applies to all companies based in Italy and to permanent establishments of foreign companies and in relation to new tangible and intangible assets that are important for business activities.

In a recent press release, the Italian association Acimall writes about the difficult introduction of this tax relief and a long wait for the simplification measures – and yet the effects of this can finally be seen in the regular association survey of member companies as a positive trend in incoming orders in the third quarter: After more than two years of declining incoming orders, a relief for the Italian market. The Italians are hoping that exports will also recover within sight.

Acimall’s quarterly survey shows that business contracted again in the third quarter compared to the same period in 2023. There was an overall decline in orders of 9.4%, with domestic demand rising by 16.1%. However, even less impetus came from abroad: a decline of 12.4%.

The order backlog has risen to 3 months, compared to 2.9 months in the period from April to June 2024, while prices have risen by 1.6% since January 1, 2024.

The mood among industrial companies is quite clear from the figures in the quality survey: 50% of respondents expect production to remain stable, while a further 50% fear a further decline. No one believes that there can be growth.

Compared to the previous quarter, the proportion of respondents expecting a decline in employment has remained unchanged (20%), while 75% predict broad stability, a decreasing proportion. Only 5 percent are confident about a possible increase in the number of employees.

In the opinion of 65% of those surveyed, available stocks are stable, for 25% they are rising and for 10% they are falling.

The fact that there was a positive development in the third quarter is reflected in the survey on forecasts: On the domestic market, 55 percent of respondents expect a period of stability (compared to 50 percent in the previous quarter), 5 percent expect growth (the same proportion as in the April bi June 2024 period) and 40 fear a further decline (compared to 45 percent in the previous quarter). As far as the foreign market is concerned, 65% of respondents see a stable trend (compared to 50%), 35% see the situation deteriorating (same figure as in the previous quarter) and no one believes that the situation will improve – in the period from April to June, 15% of respondents were still “optimistic”.