Italy’s manufacturing confidence index fell to 88.4 in December 2025 from a downwardly revised 89.5 in the previous month, below market forecasts of 89.3. Expectations for orders (3.7 vs 4.3 in November) and production (2.7 vs 3.4) weakened. At the same time, manufacturers turned pessimistic about future employment (-0.3 vs 0.5) and worries over price developments intensified (7.4 vs 6.8). Prospects for liquidity also worsened further (-7.6 vs -5.8). Meanwhile, the overall economic outlook improved, though it remained negative (-10.5 vs -11.2).