Italy business morale rises in October but consumers more downbeat

ROME, Oct 29 (Reuters) - Italian business confidence rose in October but consumer morale declined, national statistics bureau ISTAT reported on Thursday, in mixed signs for the prospects of the euro zone's third largest economy.

• ISTAT's consumer confidence index fell to 90.3 from 91.2 the previous month

• That missed a median forecast of 90.9 in a Reuters' poll of eight analysts

• The composite business morale index, combining the manufacturing, retail, construction and services sectors, rose to 96.6 from 95.9 in September

• The sub-index for manufacturing was stable at 91.9, broadly in line with Reuters' consensus forecast of 92.0

• The Italian economy held up better than expected in the first half of the year, expanding by 0.3% in the first quarter and 0.2% in the second

• ISTAT will release a flash estimate for Q3 GDP on Friday, with Reuters' consensus forecast pointing to a quarterly rise of 0.1%.

(Reporting By Gavin Jones)