ROME, Sept 26 (Reuters) - Morale among Italian manufacturers fell in September for the fourth month in a row to its lowest level for more than a year, data showed on Friday, in the latest signal the economy is failing to emerge from recession.
National statistics office ISTAT's manufacturing confidence index fell to 95.1 in September - the lowest reading since August 2013 - from a downwardly revised 95.4 the previous month, originally reported at 95.7.
The data was below market expectations, with the median forecast of a Reuters survey pointing to 95.5.
ISTAT's composite business morale index, which combines surveys of the manufacturing, retail, construction and services sectors, also fell in September to 86.6 from 88.1 in August, to hit its lowest level since December last year.
The survey heaps further pressure on the reform agenda of Prime Minister Matteo Renzi, who is struggling to revive a recession-bound economy while trying to keep a lid on strained public finances.
The economy unexpectedly contracted in both the first and second quarters of this year, plunging Italy back into its third recession in six years.
A Treasury document next week will forecast the economy will contract by 0.2 percent or 0.3 percent this year, compared with the current official forecast made in April for it to expand by 0.8 percent, a government source told Reuters on Thursday.
ISTAT said confidence had waned among companies in all sectors in September, with the drop in the manufacturing survey due to lower orders, which outweighed a marginal improvement in views on the near-term production outlook.
(Reporting by Gavin Jones)