(Reuters) - Italian consumer morale dropped for a second consecutive month in July as sentiment worsened regarding the overall state of the economy as well as prospects for the future and for personal finances, according to data on Thursday.
National statistics agency ISTAT's monthly consumer confidence index fell to 104.6 from a downwardly revised 105.6 in June, when it fell for the first time after rising for three consecutive months.
The data suggested that an initial jump in consumer morale following the arrival of 39-year old Prime Minister Matteo Renzi to power in February may have started to fade as the economy has continued to face severe headwinds.
Italy has been struggling to pull out of a two year recession and create jobs with consumer spending among the weakest elements in the economy.
Renzi's government has passed tax cuts worth a average 80 euros a month to millions of lower paid workers but the ambitious reform promises he has made to revive growth in the eurozone's third largest economy have yet to bear fruit.
ISTAT's consumer confidence index showed the sub-index measuring sentiment on the economy at 114.6 from a revised 116.3 last month, while the reading on survey respondents' personal finances stood at 101.2, down from 102.2 the previous month.
The sub-index on the current situation, incorporating both the economy and personal finances, fell to 104.0 from 104.5 and the index on the future outlook dropped to 106.3 from 107.2.