Despite the persistent difficulties, Italian families have a little more confidence in their financial situation. This is confirmed by the ING Bank Financial Welfare Index (Ibf) which, in its annual survey, records the continuation of the positive trend that began in 2015 with regard to the well-being perceived by families in the boot.
Not only that, as Paolo Pizzoli, senior economist of Ing Bank explained during the presentation of the report, although the level of financial comfort remains low due to the long crisis from which our country is starting to recover, putting in place a feeble growth, compared according to the survey carried out in April 2016, the September survey shows greater confidence than in the past regarding all the parameters taken into consideration by the index.
Generally speaking, the Financial Well-Being Index in September 2016 stood at 46,3, registering an increase of 1,5 points compared to the past survey (44,8 points) and an almost double variation in relation to the previous period.
Positive signals also arrive on the dimension relating to the ability of households to manage their debts: in the short term. the improvement exceeds 2 percentage points, reaching 58,7 in a context characterized by a low cost of money. On long-term debt, the indicator remains substantially unchanged at 43,3 points (+0,3). An element that has a great influence in this situation, explains Paolo Pizzoli, is also the intervention of the European Central Bank, which has had repercussions above all on mortgages.
Even more significant is the increase in the satisfaction that families have in the ability to set aside savings which, in September 2016, marks an increase of 2,6 points compared to the previous survey, reaching 4,3, in line with the greater comfort recorded on income. The evolution of the index on investments rises to 59 points, growing by 2 points compared to the spring of the current year, when instead it had recorded a contraction.
From a geographical point of view, the Ibf of ING Bank shows a very clear turnaround of the citizens of the North East (Triveneto and Emilia), an area that in 2015 had recorded a sharp decline in the perception of financial well-being. In September of this year however, the index rose by 4,5 points, narrowing the gap with the North West, where the rise was more moderate (from 51,8 to 52,3 points). Despite the improvements recorded, both the Center (rising to 47,3 from 46,5) and the South (reaching 39 from the previous 37,5 points) remain below average.
On the other hand, the result deriving from the analysis carried out from a demographic point of view is surprising, according to which, the most optimistic would be the Millennials, despite the many difficulties faced in recent years. But there is more, because not only in the age group between 18 and 34 did the index rise by 4,3 points compared to 45 in April 2016, but the level reached (49,3 points) represents the highest value ever recorded. The improvement - as Sara Galli underlined - is to be linked to the perception that there are finally greater prospects for the future, thanks to the reform of the labor market and the current favorable conditions relating to mortgages for home purchases, which are important in a age at which you begin to start a family.
In contrast, however, the self-employed, for which the index shows a drop of 2,5 points. In reality, explains Galli, if the indicators concerning current events are taken into consideration, even the self-employed would be positive. The negative data derives from the difficulty of this category in constructing a prospective vision of the future, in relation to which, regardless of the company size, there remains profound uncertainty.
Analyzing the data emerging from the survey from a dynamic point of view, Paolo Pizzoli underlines how "The further recovery of the IBF, sustained by all its components, it appears to be consistent with the evolution of the domestic macroeconomic picture. The economic recovery, albeit weak, is still underway. The progress in employment, also obtained thanks to the implementation of the labor market reform, has had a positive impact on income, from which young people have also benefited, until recently excluded from the recovery”.
“Very low interest rates and the absence of significant inflationary pressures on the energy front – continues the economist – have also reduced the weight of the cost of mortgages and made it easier to meet bill expenses, helping to make the Blance bond. Despite the more favorable picture, the behavior of families seems to remain marked by prudence".
On the future of the economy and therefore of the index itself, Rizzoli does not say too much, explaining that given the framework of high uncertainty, especially at an international level (from Brexit to Donald Trump's presidency) it is difficult to make predictions.
Finally, it should be noted that, for the first time, the survey also included a section on the financial literacy of Italians in its scope of analysis and their approach to managing savings from which a rather bleak picture emerges. When asked about the time dedicated to financial information and savings management, 67% of Italians answered that they do not deal with these matters at all, while only 2% dedicate a few hours to these activities each week. From this first data derives a second one relating to the understanding of the basic concepts of finance: 79% of the sample interviewed (1.000 individuals over 18 years of age, with bank accounts) believe they have little or very little knowledge of the basic financial terms, while only 36% say they know the concept of portfolio diversification and less than a third understand how the correlation between risk and return of an investment works.
