Finance
Italy business sentiment improves in June but consumer morale slips
Published by Global Banking & Finance Review®
Posted on June 27, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 27, 2025
2 min readLast updated: January 23, 2026
In June, Italy's business sentiment improved while consumer morale slipped, reflecting mixed economic signals for the euro zone's third-largest economy.
ROME (Reuters) -Italian businesses sentiment improved for a second month running in June but consumer morale fell back slightly, data showed on Friday, in mixed signs for the prospects of the euro zone's third largest economy.
National statistics institute ISTAT's composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, rose to 93.9 this month from 93.1 in May, posting the highest reading since February.
The sub-index for manufacturing posted its highest level since July last year, offering hope that the sector may be emerging from a long slump.
Construction and services also picked up, offsetting a decline in retail sector sentiment.
Consumer confidence, however, declined in June to 96.1 from 96.5 the previous month, ISTAT said, below a median forecast of 97.0 in a Reuters' poll of analysts.
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 U.S. trade tariff policy.
Italy posted growth of 0.7% in each of the last two years.
(Reporting by Gavin Jones, graphic by Stefano Bernabei)
Business sentiment in Italy improved for the second consecutive month in June, with the composite business morale index rising to 93.9 from 93.1 in May.
Consumer confidence declined in June to 96.1 from 96.5 the previous month, falling short of the median forecast of 97.0.
The increase in the business morale index was driven by improvements in the manufacturing, construction, and services sectors, despite a decline in retail sentiment.
The Italian economy grew by 0.3% in the first quarter compared to the previous three months, which was a slightly stronger reading than expected.
The manufacturing sub-index reached its highest level since July of the previous year, indicating potential recovery from a long slump.
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