Finance
Italy business and consumer sentiment rise in October, beating forecasts
Published by Global Banking and Finance Review
Posted on October 28, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 28, 2025
2 min readLast updated: January 21, 2026
Italy's business and consumer sentiment improved in October, surpassing forecasts, with ISTAT's morale index rising to 94.3 and consumer confidence climbing to 97.6.
ROME (Reuters) -Italian business and consumer sentiment rose in October, data showed on Tuesday, beating analysts' forecasts in a boost for 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 94.3 this month from 93.7 in September.
The sub-index for manufacturing was also higher at 88.3 against 87.4 the month before, against a forecast of 87.5 in a Reuters survey of four analysts.
Morale also rose in the retail and construction trade, but eased in the service sector.
Consumer confidence climbed in October for a second consecutive month to 97.6 from 96.8 in September, outpacing a median forecast of 97.0 in a Reuters' poll.
"The increase was supported by expectations regarding both the general economic situation and household finances, as well as by assessments of the ability and opportunity to save and to purchase durable goods," ISTAT said in a statement.
The improved business and consumer sentiment came against a background of renewed economic headwinds in Italy.
The economy contracted by 0.1% in the second quarter from the previous three months and the government this month trimmed its growth estimates for this year and next to 0.5% and 0.7%, respectively, citing the impact of US trade tariffs.
However, both Fitch and DBRS Morningstar have upgraded Italy's credit rating over the past two months, citing the country's political stability and improving public finances.
(Reporting by Crispian Balmer, editing by Alvise Armellini)
Consumer confidence is a measure of how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy.
A credit rating is an assessment of the creditworthiness of a borrower, indicating the likelihood of default on debt obligations.
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.
A business morale index is a statistical measure that reflects the overall sentiment and confidence of businesses in the economy.
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