Italy shows fresh weakness as consumer and business confidence fall to multi-year lows

📉 Italy’s consumer confidence fell to 90.8 in April from 92.6, below the 91.2 forecast and the lowest level in at least three years. The drop suggests households are becoming more cautious amid energy-price pressure, income concerns, and external economic risks.
🏗️ Business confidence also declined from 97.3 to 95.2, with services and construction seeing the clearest pressure. Manufacturing sentiment slipped to 87.9, showing that weakness is not limited to consumption but is also spreading into business activity.
⚡ The key backdrop remains the energy shock linked to Middle East tensions, while Italy is highly dependent on energy imports. As the third-largest economy in the Eurozone, this deterioration could add to broader concerns over regional growth.
📌 Italy’s government has already cut its growth forecast to 0.6% for both 2026 and 2027, highlighting the economy’s weak recovery momentum. If energy prices stay elevated, pressure on consumption, investment, and European monetary policy could continue.
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