Italy's economy is showing indications of a momentum slowdown, especially in industry.

This is according to findings from the country's principal business association.

"Signs of weakening continue to mount, particularly in manufacturing and construction, despite a 0.6% quarterly increase in gross domestic product in the first three months of the year," Confindustria stated in its latest report published on Monday.

Back in May, Italy's Finance Minister, Giancarlo Giorgetti, said he was positive about the country's economic prospects, going on to add that Italy's output could still be able to increase as much as 1.4% in 2023, Bloomberg reports.

Furthermore, Italy's national statistics institute also remained upbeat, forecasting a growth figure of 1.2%.

Yet although the country's services sector is still robust and employment is rising, increasing interest rates "are hindering consumption and investments, and weakness in markets outside the country is slowing Italian exports," said the research centre of the industrial employers' federation report.

Services "are less dynamic," while household consumption includes "fewer goods, especially food items, and more services," the report states.

Indeed, industrial production declined 1.9% on the month in April, whilst business and manufacturing confidence both edged down last month.

A weakness in Italy's growth projections would make it far more difficult to reduce its debt, the Bloomberg report goes on to say. The country's borrowings are above 140% of output, and there is likely to be little change over the coming year, as per forecasts by the European Commission.