Business climate: sconomic Sentiment SurveyDespite the slowdown in December 2025, the business climate remains favourable. In Q4, the PMI reached its highest average level of the year (52.4), driven by a strong improvement in activity in the services sector (53.5; +1.4 points q/q). This momentum is expected to continue in Q1 2026, supported by the Winter Olympics to be held in Italy. On the manufacturing side, the climate remained gloomy on average in Q4 (49.5; -0.2 points q/q) due to a sharp contraction in production in December (46.8; -3.5 points m/m) and a continued decline in hiring.
Household confidenceHousehold confidence remained stable over the last two months of the year (-16.4), but it is still 1 point below its long-term average. Italian households anticipate a rise in prices in 2026, which slightly worsens their expectations about the economic situation. Although declining, major purchase intentions over the next 12 months remain high by historical standards.
