FX.co ★ Italy Manufacturing Confidence Improves

Italy's manufacturing confidence indicator experienced an increase to 89.2 in January 2026, up from a revised figure of 88.5 in December, slightly surpassing market forecasts of 89. The current evaluation of orders showed reduced pessimism (-17.9 compared to -20.2 in December), and the assessment of production levels also saw improvement (-16.9 versus -17.5). Moreover, the appraisal of finished goods inventories showed signs of strengthening (2.1 compared to 1.6). Expectations for future production grew more optimistic (3.2 versus 2.8), and there was a slight easing of concerns regarding price developments (7.3 compared to 7.4). Manufacturers displayed marginally less pessimism concerning future employment prospects (-0.2 versus -0.3). Beginning with the January 2026 survey, certain questions will be removed from the questionnaire; consequently, data on internal orders levels, expectations for orders and demand, and opinions on the Italian economy will no longer be published.