Key facts
- Italian business and consumer confidence improved in August.
- The consumer confidence index rose to 94.5 from 94.2.
- The composite business morale index increased to 96.9 from 95.7.
- The manufacturing sub-index for business confidence rose to 89.9.
Italian business and consumer confidence showed an upward trend in August, offering a positive signal for the euro zone's third-largest economy. The national statistics institute ISTAT reported that its consumer confidence index climbed to 94.5 from 94.2 in July, marking a second consecutive monthly increase, though it fell short of the median analyst forecast of 95.0.
Furthermore, the composite business morale index, which aggregates data from the manufacturing, retail, construction, and services sectors, rose for the third consecutive month to 96.9, up from 95.7 in July. The sub-index for manufacturing also saw a slight improvement, reaching 89.9, just below the median forecast of 90.0.
These gains come despite a revised economic growth outlook by Giorgia Meloni's government in April, which projected 0.6% growth for both this year and next, a reduction from previous targets. This downward revision reflected concerns over surging energy prices and geopolitical instability in the Middle East. However, stronger-than-expected gross domestic product figures in the first and second quarters have indicated some economic resilience.