New car registrations in Italy in June fell 24.4 percent to 128,388 vehicles according to data released by Italy’s Transport Ministry. This is the lowest level since 1979.
Over the first six months of the year, new car sales fell 19.73 percent.
Fiat Spa, Italy’s largest carmaker said its market share fell almost 31 percent ( 30.7 pct ) in June down from 31.6 percent in May 2012. The euro-zone debt crisis and sagging consumer demand are weighing on earnings at mid-market automakers that had already struggled, or failed, to stay profitable in Europe last year.
The ISTAT statistics agency says the contraction is the worst since the first quarter of 2009, when the economy contracted by 3.5 percent. ISTAT forecasts that the Italian economy will contract by 1.3 percent this year, slightly more than the government’s estimate of 1.2 percent.
Also, Last month the European Union‘s executive, the European Commission, said in its spring forecast that Italy‘s economy would shrink by 1.4 per cent this year and grow by 0.4 per cent next year.
According to Confindustria, the unemployment rate in the country will be 10.4 per cent in 2012 and 11.8 per cent in 2013, with a peak of 12.4 in the last quarter of next year.
Also on Thursday, Italy’s national statistics agency Istat said inflation rose to 3.3 percent in June over a one-year period, after easing to 3.2 percent in May, while prices rose 0.2 percent from the previous month.