Overview

• Consumer confidence has more than halved since 2023, dropping to a 10.8 point balance, yet 43.3% of families increased consumption in 2024 while over half saw savings fall
• Italy has recorded the largest real wage decline in the OECD with early 2025 wages still 7.5% below early 2021 levels despite modest gains since late 2023
• Employment reached record highs in May with the unemployment rate holding at 6.5%, highlighting continued labour market strength
• Industrial production returned to contraction in May with a 0.7% month-on-month drop driven by significant losses in automotive and pharmaceutical output
• Escalating geopolitical tensions and shifting U.S. trade policies have heightened uncertainty and are weighing on Italy’s export-driven sectors