Italian firms see economic deterioration, rising prices
Italian industrial and service firms reported a further deterioration in economic sentiment in the second quarter of 2026. The Banca d'Italia survey also found accelerating selling prices and persistent inflation expectations.
Sentiment sours on external shocks
Italian industrial and service firms with 50+ employees reported a further deterioration in economic sentiment in Q2 2026.
The Banca d'Italia survey (May 19-June 16) found this widespread worsening across all sectors, primarily due to the Middle East conflict and Strait of Hormuz closure, which increased energy and production factor prices.
Inflationary pressures persist
Firms' outlook for their own operating conditions is less unfavorable for the next quarter, reflecting improved total demand, especially in services.
Consumer price inflation expectations range between 2.5 and 2.8 percent.
Selling prices have accelerated and are expected to rise over the next 12 months due to higher production input costs, which most firms intend to transfer.