Finance
Italy's consumer sentiment rebounds in July but business morale worsens
Published by Global Banking & Finance Review®
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
Italy's consumer confidence improved in July, while business sentiment declined, indicating mixed economic signals for the euro zone's third-largest economy.
ROME (Reuters) -Italian consumer morale rebounded in July but business sentiment fell back, data showed on Friday, giving mixed signs over the prospects of the euro zone's third largest economy.
National statistics institute ISTAT's consumer confidence rose in July to 97.2 from 96.1 in the previous month, well above a median forecast of 96.0 in a Reuters' poll of seven analysts. It was the highest reading since February.
Composite business morale index, which combines surveys of the manufacturing, retail, construction and services sectors, edged down to 93.6 this month from 93.9 in June, ISTAT said.
The decline is due to a deterioration in morale in services and construction, ISTAT said, whereas the sub-index for manufacturing slightly rose to 87.8 from a previous 87.3 and above a median forecast of 87.7.
The Italian economy grew by 0.3% in the first quarter from the previous three months, a slightly stronger reading than expected after the government in April halved its 2025 growth estimate to 0.6% amid mounting uncertainty due to US trade tariff policy.
Italy's economic growth is likely to have slowed in the second quarter due to lower consumer and investment spending, the Bank of Italy said earlier this month citing worsening sentiment and high uncertainty linked to U.S. tariffs.
ISTAT will release preliminary GDP data for the second quarter on July 30.
Italy posted a growth of 0.7% in each of the last two years.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gianluca Semeraro)
Consumer confidence measures how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy.
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period.
Business morale refers to the overall attitude, satisfaction, and confidence of employees within an organization, which can impact productivity and performance.
Investment spending refers to the purchase of goods that will be used for future production, such as machinery, buildings, and technology.
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