Italy Consumer Confidence Recovers in May, Business Morale Falls

Italy Consumer Confidence Recovers Above Expectations in May

Italian consumer morale recovered against expectations in May after recent declines, data showed on Thursday. The national statistics institute ISTAT's consumer confidence index rose to 93.4 from 90.8 in April, well above a median forecast of 90.1 in a Reuters poll of eight analysts.

Business Morale Falls to 8-Month Low

However, the composite business morale index, combining surveys of manufacturing, retail, construction and services sectors, decreased to 94.1 from 95.1 in April, posting its lowest level since September last year. The sub-index for manufacturing was stable at 87.9.

Government Cuts Growth Forecast

Giorgia Meloni's government last month cut its economic growth outlook to 0.6% for this year and next, from previous targets of 0.7% and 0.8% respectively, reflecting surging energy prices and turmoil in the Middle East. The government forecasts a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.