Italy's manufacturing confidence indicator remained unchanged at 87.9 in May 2026, slightly above expecations of 87.5. Sentiment improved regarding total order assessments (-18.4 vs -19.4) and production levels (-16.5 vs -16.7). Meanwhile, expectations for price growth increased (25.4 vs 25.0), reflecting ongoing energy price pressures. Also, expectations weakened for both production (0.5 vs 0.6) and employment (-0.8 vs 0.0). On a broader level, overall business confidence declined to 94.1 from 95.1 in the previous month, marking the lowest level since September last year. Confidence deteriorated in the construction sector (99.4 vs 100.8) and market services (96.8 vs 98.9), while retail trade sentiment improved slightly to 101.0 from 100.8.