FX.co ★ Italy Manufacturing Sentiment Improves Further

Italy’s manufacturing confidence indicator rose to 89.9 in August 2026, its highest level since June 2023, up from 89.7 in July and broadly in line with expectations. Despite this overall improvement, firms reported a more negative assessment of total orders (-20.4 vs -17.1), reflecting weaker expectations for foreign orders (-23.9 vs -22.1). Views on current production also worsened (-19.6 vs -17.8), while inventory accumulation increased further (3.8 vs 2.8).

Looking ahead, production expectations strengthened, with the relevant indicator rising to 9.6 from 4.5, and another forward-looking gauge edging up to 15.5 from 15.3. By contrast, expectations for future employment deteriorated, with that indicator declining to 1.5 from 4.4.

Meanwhile, Italy’s overall business confidence indicator increased to 96.9 from 95.7, supported by improving sentiment across sectors, particularly in construction.