The manufacturing confidence index in Italy rose to 87.8 in July 2025 from 87.3 in the previous month, marking its highest level since May 2024 and slightly beating market expectations of 87.7. The improvement was driven by stronger expectations for orders (3.2 vs 1.5 in June), selling prices (6.9 vs 6.2), employment (1.6 vs 1.0), and production (1.4 vs 1.1). However, sentiment remained fragile in some areas, with firms expressing more pessimistic views regarding liquidity conditions (-6.8 vs -5.9) and the general economic outlook (-17.8 vs -17.1), suggesting persistent concerns over broader financial and macroeconomic stability despite improving operational indicators.