Italy’s manufacturing confidence indicator rose to 91.9 in September 2026 from 90.2 in August, surpassing market expectations of 90.5 and reaching its highest level since April 2023. The reading points to a continued improvement in manufacturing sentiment, supported by better assessments of current demand and production conditions. Assessments of total orders improved (-13.5 vs -19.6), driven in part by a notable pickup in foreign orders (-19.1 vs -23.4). Assessments of production levels also improved (-13.7 vs -16.2). At the same time, employment prospects increased (3.3 vs 1.5), suggesting more positive hiring intentions among manufacturers. However, production expectations weakened (8.9 vs 9.6), while price expectations increased (17.1 vs 15.5), primarily due to the recent surge in oil prices amid ongoing tensions in the Middle East.