ROME (Reuters) -Italian consumer morale rebounded in July but business sentiment fell back, data showed on Friday, giving mixed signs over the prospects of the euro zone's third largest economy.
Italy's Consumer Confidence Rises in July While Business Sentiment Declines
Economic Sentiment in Italy
ROME (Reuters) -Italian consumer morale rebounded in July but business sentiment fell back, data showed on Friday, giving mixed signs over the prospects of the euro zone's third largest economy.
Consumer Confidence Overview
National statistics institute ISTAT's consumer confidence rose in July to 97.2 from 96.1 in the previous month, well above a median forecast of 96.0 in a Reuters' poll of seven analysts. It was the highest reading since February.
Business Morale Trends
Composite business morale index, which combines surveys of the manufacturing, retail, construction and services sectors, edged down to 93.6 this month from 93.9 in June, ISTAT said.
Economic Growth Projections
The decline is due to a deterioration in morale in services and construction, ISTAT said, whereas the sub-index for manufacturing slightly rose to 87.8 from a previous 87.3 and above a median forecast of 87.7.
The Italian economy grew by 0.3% in the first quarter from the previous three months, a slightly stronger reading than expected after the government in April halved its 2025 growth estimate to 0.6% amid mounting uncertainty due to US trade tariff policy.
Italy's economic growth is likely to have slowed in the second quarter due to lower consumer and investment spending, the Bank of Italy said earlier this month citing worsening sentiment and high uncertainty linked to U.S. tariffs.
ISTAT will release preliminary GDP data for the second quarter on July 30.
Italy posted a growth of 0.7% in each of the last two years.
(Reporting by Antonella Cinelli, graphic by Stefano Bernabei, editing by Gianluca Semeraro)
