Consumer spending in Italy fell by 1% during the first four months of the year compared to the same period in 2007, when spending rose by 1%, according to the national retailers' association Confcommercio.
Spending in April alone was 0.9% below April 2007, Confcommercio added.
For the first time in two years, the association observed, there was a decline in spending in the services sector, -0.8%.
Spending on food, non-alcoholic beverages and tobacco in April was down 1.7% over April 2007, compared to a 4.4% year-on-year drop in March, and was 2.4% lower for the first four months of the year.
Year-on-year spending sank 3.4% for entertainment, recreation and culture as well as transport in April, while for the first four months of the year spending in the first category tumbled 4.6% and in the second by 6.6%.
Spending rose for communication goods and services by 6% in April and 10.9% for the first four months of the year.
According to Concommercio, the decline in spending paralleled a drop in buying power for family incomes which were being eroded by rising inflation.
The association added that Italians can expect inflation to remain above 3% for all of 2008 while there may be a slight decline in the first months of next year.
Confcommercio also said that it expected Italy's GDP this year to rise by only 0.2%.
