Italy's business sentiment improves in May; retail outlook mixed

Italy’s consumer confidence index climbed to 96.5 in May 2025 from 92.7 in April, driven by a marked improvement in the economic climate index, which rose from 89.6 to 97.5.

Gains were also recorded across the future, current, and personal components, according to the official statistical agency Istat.

Business sentiment also improved, with the Istat Economic Sentiment Indicator (IESI) rising to 93.1 from 91.6. Manufacturing confidence edged up to 86.5, supported by improved assessments of order books and expectations for future production, while inventory balances declined to 2.7 from 3.0.

Retail trade sentiment advanced to 102.8 from 101.8, driven by optimism over current sales and a reduction in inventory levels (with the related balances moving from 6.4 to 14.7 and from 8.7 to 7.7, respectively). However, future business expectations deteriorated, with the related balance falling from 28.4 to 22.1.

Confidence in market services increased to 94.5 from 91.4, bolstered by improved order book evaluations and stronger assessments of current business conditions.

ALCHEMPro News Desk (HU)