Italy consumer confidence recovers in May but business morale slides

Thursday 28 May 2026 - 10:15

Consumer confidence in Italy improved in May after several months of decline, according to data released by the national statistics institute ISTAT. However, business sentiment weakened, reaching its lowest level in eight months, highlighting mixed signals for the eurozone’s third-largest economy.

The consumer confidence index rose to 93.4 in May, up from 90.8 in April. The increase exceeded expectations, as analysts had forecast a lower reading, suggesting that households are becoming slightly more optimistic about their financial situation and the broader economic outlook.

In contrast, business morale declined across key sectors including manufacturing, retail, construction, and services. The composite business confidence index fell to 94.1 from 95.1 in the previous month, marking its weakest performance since September of last year.

Economists note that the divergence between consumer optimism and business pessimism reflects ongoing uncertainty in Italy’s economic environment. While households appear more resilient, companies continue to face challenges linked to demand fluctuations, costs, and global economic conditions.

Overall, the latest figures point to a fragile recovery, with mixed signals suggesting that Italy’s economic momentum remains uneven.