July: industrialists' expectations improve

Giovanna Labartino

Senior Economist

Labour Market and Income Distribution

Lorenzo Marchetti

Economist

Conjuncture and Macroeconomic Simulations

Tuesday 29 July 2025

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  • The quick survey on industrial production, addressed to large companies associated with Confindustria, showed an improvement in expectations in July compared to the previous month's survey. The share of respondents who believe that production will remain stable decreased significantly compared to June (39.6% from 67.6%), in favour of the share of those who claim that production will increase moderately (39.4%) or significantly (11.0%). On the other hand, the share of companies anticipating a contraction in activity remained almost unchanged (10.0%).

  • Industrialists interviewed in July still see demand and orders as the main strengths supporting production. The balance declined after the peak in the previous month but remained positive (2.3% from 6.1% in June) (Chart 2).
  • Business expectations on labour availability in the coming months improved again, registering a balance of 2.3% after 1.1% in the previous month.
  • The balance of production costs in the July survey remained negative, albeit improving (-3.2% from -6.2%).
  • Ratings for financial conditions returned to positive territory in July (0.5% from -0.7% ).
  • Regarding the availability of materials, the balance of July responses is unchanged (-0.1%).
  • Industrialists' assessment of plant availability deteriorated significantly in the current month (-1.7% from -0.2%).

 

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