Italy consumer confidence recovers in May but business morale slides - Finance news and analysis from Global Banking & Finance Review
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Italy consumer confidence recovers in May but business morale slides

Published by Global Banking & Finance Review

Posted on May 28, 2026

2 min read

· Last updated: May 28, 2026

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Italy consumer confidence recovers in May but business morale slides

Mixed Economic Signals in Italy for May

Consumer Confidence Rebounds

ROME, May 28 (Reuters) - Morale among Italian consumers recovered against expectations in May after recent declines, but business morale fell to an 8-month low, data showed on Thursday, in mixed signs for the euro zone's third largest economy.

ISTAT Consumer Confidence Index

National statistics institute ISTAT's consumer confidence index rose to 93.4 from 90.8 the previous month, well above a median forecast of 90.1 in a Reuters' poll of eight analysts.

Business Morale Declines

Composite Business Morale Index

The composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, decreased to 94.1 from 95.1 in April, posting its lowest level since September last year.

Manufacturing Sector Stability

The sub-index for manufacturing was stable at 87.9, ISTAT said.

Government Economic Outlook

Revised Growth Forecasts

Giorgia Meloni's government last month cut its economic growth outlook to 0.6% for this year and next, reflecting surging energy prices and turmoil in the Middle East, from previous targets of 0.7% and 0.8% respectively.

Long-term Projections

The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.

(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)

Key Takeaways

  • Consumer confidence exceeded forecasts, rising from April’s 90.8 to 93.4 in May, showing household sentiment strengthening (tradingeconomics.com).
  • Despite consumer optimism, the composite business morale index fell from 95.2/95.1 in April to 94.1 in May—the weakest since September 2025—underscoring sectoral caution (tradingeconomics.com).
  • Manufacturing morale remained subdued at 87.9, aligned with April’s low, while construction and services sentiment also weakened, though retail trade showed modest resilience (tradingeconomics.com).

References

Frequently Asked Questions

How did Italy's consumer confidence index change in May?
Italy's consumer confidence index rose to 93.4 in May from 90.8 the previous month, higher than expectations.
What happened to business morale in Italy in May?
Italy's composite business morale index fell to 94.1 in May from 95.1 in April, reaching its lowest point since September last year.
Which sectors are included in the business morale index?
The composite business morale index includes manufacturing, retail, construction, and services sectors.
What was the manufacturing sector’s morale index in May?
The manufacturing sector's morale index was stable at 87.9 in May.

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