Italy consumer morale above forecasts

The Italian manufacturing confidence index was unchanged at 87.3 in September 2025, falling just short of market expectations of 87.5. Firms reported modest improvements in their assessment of order books, suggesting some stabilization in demand.

Inventories of finished goods were viewed as broadly unchanged compared with the previous month, pointing to a relatively balanced supply-demand situation.

However, optimism about future production weakened, indicating that manufacturers remain cautious about the near-term outlook amid external headwinds and softer global demand.

In contrast, Italian consumer sentiment improved. The national consumer confidence index rose to 96.8 in September from 96.2 in August, surpassing consensus forecasts of 96.5.

Gains were broad-based across components: the personal climate index ticked up to 96 from 95.9, showing slightly stronger household sentiment; the current climate index climbed to 99.9 from 99.2, reflecting improved assessments of present conditions; the future climate index advanced to 92.6 from 92.2, suggesting households are becoming modestly more optimistic about the months ahead.

Consumers’ views on the general economic situation also strengthened significantly, jumping to 98.8 in September from 97 in August. The improvement points to a gradual rebound in household confidence, supported by easing inflationary pressures and the resilience of the labor market, though sentiment remains below long-term averages.