Although Italy's consumer optimism has been on the upswing, a lack of consumer spending is cited for a larger-than-estimated contraction of 0.3% in the economy in the second quarter. "The latest indicators are consistent with gradual improvement. The decline in output should come to a halt in the coming months," said Bank of Italy Governor Ignazio Visco. However, he said, "the downside risks to this scenario are compounded by investors' concern about possible political instability."
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