Italy’s manufacturing confidence indicator fell to 87.9 in April 2026 from a downwardly revised 88.7 in the previous month, slightly below market expectations of 88. This marked the weakest reading since September 2025, weighed down by uncertainty over persistent tensions in the Middle East. Both assessments of total order books (-19.4 vs -17.8 in March) and expectations for production levels (0.7 vs 1.4) deteriorated. Price growth expectations also worsened amid high energy prices (24.9 vs 12.9). Meanwhile, employment prospects remained stable (0 vs -0.9). On a broader level, overall business confidence weakened (95.2 vs 97.3), with sentiment in construction (100.9 vs 103.6) and market services (99.1 vs 102.6) also declining. In contrast, retail trade confidence improved slightly (100.8 vs 100.5).