Consumer confidence in Italy has been dragged down by concerns over job security, with business confidence also witnessing a lag, further clouding prospects for the ailing economy.

Italy’s consumer confidence index dropped to 109.2 in August, the lowest since July last year. That’s down from the 111.2 level measured in the previous month and below expectations for a more modest decline to 110.3, data released by the Italian statistics office showed Monday.

For the manufacturing sector, the confidence index dropped to 101.1 from 102.9. August’s reading is the weakest since February last year, but the index has been flat lining since the start of 2015. Further, ISTAT’s composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, dropped even more steeply in August to 99.4 from 103.0, also posting its lowest level since February last year.

Meanwhile, assessments on order books and production expectations worsened from -14 to -18 and from 10 to 9 respectively. Inventories remained stable at 3.