Italy's manufacturing confidence indicator fell to 88.5 in February 2026 from 89.2 in the previous month. Assessments of order books (-19.3 vs -18.1 in January) and production levels (-17.7 vs -17.5) became more negative, while finished goods inventories rose (2.5 vs 2.1), pointing to slower sales. Looking ahead, manufacturers’ expectations for production (2.7 vs 3.2) and employment (-0.9 vs -0.2) deteriorated. Inflation expectations also increased (8.5 vs 7.3), reflecting rising cost pressures. Meanwhile, prospects for liquidity improved slightly (-8.0 vs -8.3).