Italian leather industry recovery household consumption is still sluggish

In the first half of this year, the Italian economy showed signs of stabilization and a modest recovery, largely fueled by sustained growth in industrial exports. However, underlying challenges such as high unemployment, sluggish domestic consumption, and the fading impact of recent economic stimulus measures continue to weigh on overall growth. While there are positive signals, the momentum for a full and lasting recovery remains limited. The backbone industries, particularly traditional sectors, have started to show some signs of improvement. Since the end of last year, these key sectors have moved out of their prolonged downturn, with varying degrees of recovery observed. From January to July, the production of textiles, garments, and leather goods increased by 7.4% year-on-year, while sales rose by 4.3%, indicating a gradual rebound in manufacturing activity. Despite these improvements, household consumption remains weak. According to data from the Italian National Institute of Economic Research, consumer confidence dropped to 104.1 in August, down from 105.5 in July—the lowest level since March 2009. This decline reflects ongoing concerns among households about job security, inflation, and future economic prospects. Looking at major consumer categories, sales of apparel products fell by 0.7%, while footwear and leather goods saw a slight decline of 0.1%. These figures highlight the continued struggles of the retail sector, even as certain industrial segments begin to stabilize. Overall, Italy’s path to a stronger recovery remains uncertain, with structural issues and external pressures still posing significant challenges.