Italy Manufacturing Confidence at 2023-Highs
2026-07-31 08:26
By
Larissa Caser
1 min. read
Italy's manufacturing confidence indicator rose to 89.6 in July 2026, the highest level since June 2023, up from 88.6 in the previous month, marking a broad-based improvement in business sentiment.
Firms reported a less negative assessment of both total orders (-16.5 vs -19.3), reflecting improvements in sentiment of foreign orders (-21.9 vs -24.5).
Meanwhile, views on current production strengthened slightly (-15.0 vs -15.7), although still in negative territory, alongside a further buildup in inventories (2.7 vs 1.4).
Looking ahead, production expectations improved (3.5 vs 1.8), while inflation expectations eased markedly (15.3 vs 22.0), pointing to softer cost pressures.
Labor market sentiment also rebounded sharply, with the employment indicator rising to 4.4 from -1.8.
Meanwhile, Italy's overall business confidence edged up to 95.6 from 95.3, supported by stronger sentiment in market services, and retail trade, while confidence in the construction sector weakened.