Finance
Italy Consumer Morale Plunges to Two-And-A-Half Year Low
Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min readLast updated: March 26, 2026
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Italy’s consumer confidence dropped sharply in March to 92.6—the lowest since October 2023—due to geopolitical tensions following the US‑Israeli strike on Iran, while business confidence remained largely steady at 97.3, reflecting mixed economic signals.
Italy Consumer Morale Slumps to Lowest Level Since October 2023
Consumer and Business Sentiment in Italy: March 2024 Overview
Consumer Confidence Hits New Lows
ROME, March 26 (Reuters) - Morale among Italian consumers fell in March to its lowest since October 2023 following the US-Israeli attack on Iran, while business sentiment was roughly stable, data showed on Thursday, in mixed signs for the euro zone's third largest economy.
National statistics institute ISTAT's consumer confidence index plunged to 92.6 from 97.4 the previous month, well below a median forecast of 95.5 in a Reuters' poll of seven analysts.
Economic Forecasts and Risks
The country's main business lobby Confindustria forecast on Wednesday the Italian economy will grow by 0.5% this year, cutting its previous 0.7% estimate made in October and warning of strong downside risks if the conflict in Iran drags on.
The slump in consumer morale is more bad news for Prime Minister Giorgia Meloni, following her defeat in a March 22-23 referendum on a flagship reform of the justice system.
Business Morale and Sector Performance
The composite business morale index, combining surveys of the manufacturing, retail, construction and services sectors, decreased marginally to 97.3 this month from 97.4 in February.
Manufacturing Sector
The sub-index for manufacturing increased to 88.8 from 88.5 the previous month, ISTAT said.
Economic Growth Figures
Quarterly and Yearly Growth
The Italian economy grew by 0.3% in the fourth quarter of last year from the previous three months and expanded 0.8% on a year-on-year basis, a slightly stronger reading than expected.
Government Targets and Projections
The government currently has an economic growth target of 0.7% for this year, which it set last autumn, and is due to publish updated targets next month.
Italian gross domestic product rose 0.5% in 2025, a third straight year of sub-1% growth.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gavin Jones)
Key Takeaways
- •Consumer morale fell to 92.6 in March, well below the Reuters poll expectation of 95.5, marking the lowest reading since October 2023 (lemonde.fr).
- •Business sentiment held nearly flat at 97.3, with a slight uptick in the manufacturing sub‑index to 88.8 (lemonde.fr).
- •Italy’s economic growth forecast for 2025 was revised down to 0.5%, and Confindustria also cut its 2026 outlook to 0.5%, signaling sluggish momentum amid mounting geopolitical risks (lemonde.fr).
References
Frequently Asked Questions about Italy consumer morale plunges to two-and-a-half year low
1What caused the decline in Italy's consumer morale in March?
The plunge was attributed to geopolitical tensions following the US-Israeli attack on Iran and ongoing economic concerns.
2How low did Italy's consumer confidence index fall in March 2024?
The ISTAT consumer confidence index dropped to 92.6, the lowest since October 2023.
3Was business sentiment in Italy also affected?
Business sentiment remained roughly stable, with the composite business morale index slipping slightly to 97.3 from 97.4.
4Who is impacted by the decline in consumer morale?
The slump contributes to challenges for Prime Minister Giorgia Meloni, coming after a political setback in a referendum.
