Italian business confidence picks up in February, even as consumer sentiment sours

The mood of Italian consumers continued to darken in February even as manufacturing businesses grew more confident.

ISTAT's consumer confidence index slipped from a reading of 108.6 for Janauary to 106.6 in February.

In December, the index had stood at 110.8.

Almost all subidices fell back.

In particular, a subindex of Italians' expectations for their economy retreated from -28.0 in January to -37.0 in February.

Italians also judged in February that their opportunities to save had decreased, from 122.0 to 111.0.

Manufacturing firms pick up the slack

Business confidence within manufacturing in the euro area's third-largest economy on the other hand picked up.

ISTAT's manufacturing sentiment index improved from 105.0 to 106.3, with firms expressing stronger confidence around their order books and inventory levels, although a sub-index of output expectations dipped from 13.0 to 12.0.

A gauge of confidence among consumer goods manufacturers rose from 103.0 to 104.0, while another tracking makers of capital goods improved from 109.7 to 111.6.

Another gauge linked to construction firms was steady in February at 123.9.

In parallel, subindices for retail and services improved to readings of 108.5 and 105.5, from 103.4 and 105.4, respectively.