ROME, May 7 (Xinhua) -- The Italian economy in the first quarter of 2018 grew at the same pace as in the previous quarter, the National Institute of Statistics (ISTAT) said on Monday.

In the first three months of this year, manufacturing production and exports dropped moderately, while employment showed signs of recovery, and inflation remained moderate.

The gross domestic product (GDP) of the euro-zone's third largest economy rose by 0.3 percent in the first quarter compared to the previous one, sustained by domestic demand and suffering a negative growth contribution by the net foreign component.

Manufacturing value added remained flat in the same period, interrupting a growing trend shown in the latest quarters, according to ISTAT.

The industrial production index and export volume dropped by 0.5 percent and 0.6 percent in February against January, respectively. However, the construction sector showed signals of recovery.

Data on production in construction showed a moderate growth as well, with the index increasing by 1.3 percent from November to February.

The statistical office also said employment growth accelerated in March, driven by a monthly rise registered in the male workforce (0.6 percent), among self-employed people (1.1 percent) and among workers aged 25 to 34 (1.5 percent).

The jobless rate in March was stable at 11 percent.

Both employment and unemployment rates have improved, ISTAT noted, yet still lag behind the European average. In 2017, Italian employment among people aged 20-64 was at 62.3 percent against a European average of 72.2 percent, and the female workforce was significantly lower than that (52.5 percent against 66.5 percent, respectively).

Finally, Italy's consumer confidence decreased slightly in April, but maintained a very high level, according to the report.

The composite index of business confidence also decreased last month, mainly due to the negative views reported by retail trade firms, and only partially counter-weighed by positive expectations in construction.

Confidence deteriorated in manufacturing, which was almost entirely attributable to the order component, ISTAT said.