Italy’s manufacturing confidence index declined to 85.7 in April 2025 from 86.0 in March, though the figure came in slightly above market expectations of 85.4.
Italy manufacturing sentiment lowest since 2020
This marked the lowest level since November 2020, underscoring deepening pessimism in the sector. Sentiment surrounding current production worsened slightly (-21.5 vs. -21.4 in March), while the outlook for output over the next three months became more downbeat (-2.4 vs. -1.0). Manufacturers also grew more concerned about future orders (-1.6 vs. -0.4), the broader economic environment (-27.6 vs. -18.3), and anticipated cash availability (-8.9 vs. -6.9), all pointing to increasing uncertainty. Additionally, expectations for employment turned negative (-0.5 vs. 1.8), while assessments of finished goods inventories remained stable at 3.
Italian consumer confidence drops to 18-month low
The Italian consumer confidence index fell to 92.7 in April 2025, down from 95.0 in March and below market expectations of 94.0. This was the lowest level since October 2023 and reflected broad-based deterioration in household sentiment. All key components declined: the economic climate gauge fell to 89.6 from 93.2, the personal climate dropped to 93.9 from 95.7, the current climate softened to 95.4 from 97.9, and the future climate slipped to 89.1 from 91.1. The widespread decline suggests growing concerns among consumers about their financial situation and the broader economic outlook amid elevated uncertainty and inflationary pressures.
