Italian consumer and business confidence increased in August, offering a positive signal for the euro zone's third-largest economy. ISTAT, Italy's national statistics institute, said its consumer confidence index rose to 94.5 from 94.2 in July, marking a second consecutive monthly increase but falling short of the 95.0 median forecast from a Reuters poll of seven analysts. The composite business morale index, which covers manufacturing, retail, construction and services, advanced for a third month to 96.9 from 95.7. Manufacturing confidence edged up to 89.9 from 89.7, just below the 90.0 median forecast. Giorgia Meloni's government cut its economic growth forecast in April to 0.6% for both this year and next, from earlier targets of 0.7% and 0.8%, citing surging energy prices and turmoil in the Middle East. However, stronger-than-expected gross domestic product data in the first and second quarters suggested some resilience to the Middle East crisis. The government's 0.8% growth forecast for 2028 would represent six consecutive years of growth below 1%.