Italy Manufacturing Confidence Improves in June

Italy’s manufacturing confidence indicator rose to 88.4 in June 2026 from 87.9 in each of the previous two months. Assessments of production levels (-16.6 vs -16.7 in May) became slightly less pessimistic, while assessments of finished goods inventories weakened (1.3 vs 3.0) and order books deteriorated further (-19.7 vs -18.6). Looking ahead, manufacturers’ expectations for production (1.5 vs 0.7) improved, while employment expectations weakened further (-1.9 vs -0.8). Inflation expectations eased to 22.5 from 25.3 in May, reflecting moderating cost pressures. More broadly, overall business confidence picked up (95.2 vs 94.2), with confidence in construction (101.7 vs 99.4) and retail trade (105.5 vs 101.3) strengthening, while sentiment in market services edged higher (97.2 vs 96.8).

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).