Italy Consumer and Business Confidence Drops in September, Signaling Headwinds for Euro Zone's Third-Largest Economy

Italian consumer and business confidence declined in September, a negative signal for the euro zone's third-largest economy, national statistics institute ISTAT reported on September 30, 2026. The consumer confidence index fell to 91.2 from 94.5 in August, well below the median forecast of 94.0 in a Reuters poll of six analysts. ISTAT's composite business morale index, covering manufacturing, retail, construction and services, slipped to 95.9 from 97.0. The manufacturing sub-index bucked the trend, rising to 91.9 from 90.2 and beating a 90.5 forecast. Prime Minister Giorgia Meloni's government cut its 2026 growth outlook to 0.6% in April, citing surging energy prices and Middle East turmoil. First- and second-quarter GDP nonetheless exceeded expectations. The government is expected to update projections this week, indicating growth may approach 1% for the year.