Italy Business Confidence Unchanged in May

Italy's manufacturing confidence indicator remained unchanged at 87.9 in May 2026, slightly above expecations of 87.5. Sentiment improved regarding total order assessments (-18.4 vs -19.4) and production levels (-16.5 vs -16.7). Meanwhile, expectations for price growth increased (25.4 vs 25.0), reflecting ongoing energy price pressures. Also, expectations weakened for both production (0.5 vs 0.6) and employment (-0.8 vs 0.0). On a broader level, overall business confidence declined to 94.1 from 95.1 in the previous month, marking the lowest level since September last year. Confidence deteriorated in the construction sector (99.4 vs 100.8) and market services (96.8 vs 98.9), while retail trade sentiment improved slightly to 101.0 from 100.8.

Italy’s manufacturing confidence indicator fell to 87.9 in April 2026 from a downwardly revised 88.7 in the previous month, slightly below market expectations of 88. This marked the weakest reading since September 2025, weighed down by uncertainty over persistent tensions in the Middle East. Both assessments of total order books (-19.4 vs -17.8 in March) and expectations for production levels (0.7 vs 1.4) deteriorated. Price growth expectations also worsened amid high energy prices (24.9 vs 12.9). Meanwhile, employment prospects remained stable (0 vs -0.9). On a broader level, overall business confidence weakened (95.2 vs 97.3), with sentiment in construction (100.9 vs 103.6) and market services (99.1 vs 102.6) also declining. In contrast, retail trade confidence improved slightly (100.8 vs 100.5).

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.