Growth prospects are being hit by increasing uncertainty, Istat said on Thursday in its report on the Italian economy for May and June.

"The uncertainty surrounding the international framework is increasing further," the national statistics agency said.

"In addition to the frequent updates on U.S.

trade policy, there has been an escalation in geopolitical tensions in the Middle East.

"Growth prospects for international trade, although showing signs of recovery in May and June, remain negative.