(Reuters) - Italian consumer confidence fell to a 10-month low in December as sentiment weakened over personal finances and the situation of the recession bound economy, data showed on Monday.
National statistics office ISTAT's headline consumer morale index declined to 99.7 in December, the lowest reading since February, from an unrevised 100.2 in November.
The median forecast in a Reuters survey of 13 analysts had pointed to a slight rise to 100.5.
December's decline was the third straight fall in morale despite tax cuts for low earners introduced by Matteo Renzi's government and does not augur well for prospects of a pick-up in consumer spending.
A sub-index measuring respondents' views on the economic situation declined to 103.2 from 103.9 in November, while an index gauging sentiment on respondents' personal finances fell from 99.1 to 98.0, its lowest level since December last year.
Italy's economy, the most sluggish in the euro zone for more than a decade, has not posted a single quarter of growth in the last three years.
The government is forecasting economic output to fall 0.3 percent this year, the third consecutive year of contraction, before rising a meagre 0.6 percent in 2015.
Consistently weak domestic demand has been one of the main drags on the euro zone's third-largest economy.
Analysts say the consumer confidence index shows little immediate correlation with spending patterns, though it does reflect longer term trends.
(Reporting by Gavin Jones)