Italy Manufacturing Confidence Slightly Improves

Italy’s manufacturing confidence indicator edged higher to 88.8 in March 2026 from 88.5 in the previous month. Assessments of order books (-17.4 vs -19.1 in February) and production levels (-15.7 vs -16.7) became less pessimistic, while the assessments of finished goods inventories edged lower (2.2 vs 2.5). Looking ahead, manufacturers’ expectations for production (1.5 vs 2.5) weakened, while employment remained unchanged (-0.9%). Inflation expectations climbed to 12.2 from 8.6 in February, reflecting rising cost pressures. Meanwhile, confidence in other sectors, particularly construction (103.6 vs 103.1) and market services (102.7 vs 102.1) remained strong, while retail trade confidence (100.6 vs 104.9) fell sharply.

Italy's manufacturing confidence indicator fell to 88.5 in February 2026 from 89.2 in the previous month. Assessments of order books (-19.3 vs -18.1 in January) and production levels (-17.7 vs -17.5) became more negative, while finished goods inventories rose (2.5 vs 2.1), pointing to slower sales. Looking ahead, manufacturers’ expectations for production (2.7 vs 3.2) and employment (-0.9 vs -0.2) deteriorated. Inflation expectations also increased (8.5 vs 7.3), reflecting rising cost pressures. Meanwhile, prospects for liquidity improved slightly (-8.0 vs -8.3).

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.