Figures from the National Institute of Statistics (ISTAT) showed that in May, the consumer confidence index rose to 96.5 points from 92.7 points in April (a 1.5-year low). The latest reading was the highest since February. Economists had expected growth to 93.0 points. Meanwhile, the economic climate index increased from 89.6 to 97.5. Additionally, the future, current and personal components also showed growth passing from 89.1 to 93.7, 95.4 to 98.6 and 93.9 to 96.1, respectively.
The data also showed that the economic sentiment indicator increased to 93.1 points from 91.6 points in April. The manufacturing confidence climate improved to 86.5 from 85.8. The construction confidence climate fell to 102.2 from 103.6. The market services confidence index rose to 94.5 from 91.4, and the retail trade confidence index improved from 101.8 to 102.8.
According to the latest forecast by the European Commission, Italy's real GDP growth is expected to remain stable at 0.7% in 2025 and to rise to 0.9% in 2026. The economic expansion is set to be supported by domestic demand, in particular investment fuelled by RRF-related spending. Inflation is forecast to remain below 2% in both 2025 and 2026, on the back of negative import price dynamics and moderate domestic costs increases.