Italy Manufacturing Confidence Hits Highest Since 2023

Italy’s manufacturing confidence indicator rose to 91.9 in September 2026 from 90.2 in August, surpassing market expectations of 90.5 and reaching its highest level since April 2023. The reading points to a continued improvement in manufacturing sentiment, supported by better assessments of current demand and production conditions. Manufacturers’ assessments of total orders improved (-13.5 vs -19.6), driven in part by a notable pickup in foreign orders (-19.1 vs -23.4). Views on current production levels also firmed (-13.7 vs -16.2). Looking ahead, employment prospects increased (3.3 vs 1.5), suggesting more positive hiring intentions among manufacturers. However, production expectations weakened (8.9 vs 9.6), while price expectations increased (17.1 vs 15.5), primarily due to the recent surge in oil prices amid ongoing tensions in the Middle East.

Italy’s manufacturing confidence indicator rose to 89.9 in August 2026, the highest level since June 2023, from 89.7 in July and broadly in line with expectations. Despite the improvement in overall sentiment, firms reported a more negative assessment of total orders (-20.4 vs -17.1), driven by weaker expectations for foreign orders (-23.9 vs -22.1). Views on current production also deteriorated (-19.6 vs -17.8), while inventory accumulation increased further (3.8 vs 2.8). Looking ahead, production expectations improved to 9.6 from 4.5, although edged higher to 15.5 from 15.3. Expectations for future employment weakened, with the indicator falling to 1.5 from 4.4. Meanwhile, Italy’s overall business confidence indicator increased to 96.9 from 95.7, supported by improving sentiment across sectors, particularly construction.

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.