Finance
Italy consumer sentiment worsens more than expected, business morale stable
Published by Global Banking & Finance Review®
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Italy's consumer sentiment worsened in August, while business morale remained stable, reflecting mixed economic signals for the euro zone's third-largest economy.
ROME (Reuters) -Italian consumer morale fell by more than expected in August whereas businesses sentiment was stable, data showed on Thursday, in mixed signs for the euro zone's third-largest economy.
National statistics institute ISTAT's consumer confidence index fell in August to 96.2 from 97.2 in the previous month. The figure was below a median forecast of 96.6 in a Reuters' poll of six analysts.
Composite business morale index, which combines surveys of the manufacturing, retail, construction and services sectors, was unchanged in August at 93.6.
A morale improvement in services offset a deterioration in the other sectors, including for the manufacturing sub-index that fell to 87.4 from a previous 87.8, slightly above a median forecast of 87.2.
The Italian economy shrank unexpectedly 0.1% in the second quarter from the previous three months, according to preliminary data. ISTAT is due to release a numerical breakdown of GDP components on Friday.
Prime Minister Giorgia Meloni's government in April halved its 2025 growth forecast to 0.6% from a 1.2% target set in September 2024, amid mounting uncertainty due to U.S. tariff policies.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Alvise Armellini)
The consumer confidence index in Italy fell to 96.2 in August from 97.2 in the previous month.
The composite business morale index remained unchanged in August at 93.6, indicating stable business sentiment.
The Italian economy unexpectedly shrank by 0.1% in the second quarter compared to the previous three months.
Prime Minister Giorgia Meloni's government halved its 2025 growth forecast to 0.6% from a previous target of 1.2%.
An improvement in services offset a deterioration in other sectors, including a slight decline in the manufacturing sub-index.
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