Italy Manufacturing Confidence Weakens

Italy's manufacturing confidence indicator rose to 89.2 in January 2026, from an upwardly revised 88.5 in the previous month, slightly exceeding market expectations of 89. The current assessment of orders was less pessimistic (-17.9 vs -20.2 in December), as was the assessment of production levels (-16.9 vs -17.5). In addition, the current assessment of finished goods inventories strengthened (2.1 vs 1.6). Expectations for future production strengthened (3.2 vs 2.8), and concerns over price developments eased slightly (7.3 vs 7.4). Manufacturers were also slightly less pessimistic regarding future employment (-0.2 vs -0.3). Starting with the January 2026 survey, some questions will be removed from the questionnaire. As a result, internal orders level, expectations on orders and demand, and opinions on the Italian economy will no longer be published.

Italy’s manufacturing confidence index fell to 88.4 in December 2025 from a downwardly revised 89.5 in the previous month, below market forecasts of 89.3. Expectations for orders (3.7 vs 4.3 in November) and production (2.7 vs 3.4) weakened. At the same time, manufacturers turned pessimistic about future employment (-0.3 vs 0.5) and worries over price developments intensified (7.4 vs 6.8). Prospects for liquidity also worsened (-7.6 vs -5.8). Meanwhile, the overall economic outlook improved, though it remained negative (-10.5 vs -11.2).

Italy’s manufacturing confidence index climbed to 89.6 in November 2025 from an upwardly revised 88.4 in October, surpassing market forecasts of 88.5. This marked the highest reading since June 2023, as expectations for orders (4.3 vs 3.3 in October) and production (3.5 vs 2.2) improved. Manufacturers were also less pessimistic about the economic outlook (-11.2 vs -12.2). However, expectations for liquidity conditions deteriorated (-5.7 vs -5.2). Additionally, employment prospects were less positive (0.5 vs 1.3), while concerns over price developments increased (6.8 vs 6.3).