Italian Business and Consumer Confidence Rise in July

The National Statistics Institute (ISTAT) reported an increase in Italian business and consumer confidence for July, providing positive momentum for the euro zone's third-largest economy. The consumer confidence index climbed to 94.2 from June's 92.4, while the composite business morale index rose to 95.6. Notably, the manufacturing sub-index reached 89.6, marking its highest level since June 2023.

These figures follow strong GDP growth data from the first and second quarters. The gains suggest economic resilience even as the government of Giorgia Meloni previously reduced its growth outlook to 0.6% for the current and following year. That downward adjustment was attributed to high energy prices and instability in the Middle East.

Despite the recent confidence surge, the Italian government maintains a forecast of 0.8% growth for 2028. If realized, this would mark six consecutive years of annual economic growth remaining below 1%.