The Fascist Party nationalized a few industries, but for the most part, corporations were encouraged by Mussolini to make profits so Italy would become a financially powerful nation. A primary example of this is how he would weaken trade unions so that businesses could exploit the labor forces.
Mussolini privatized phone companies, repealed laws that forced businesses to provide health insurance, cut taxes on the upper classes, etc. He is a capitalist by anyone’s definition.
Allow me to provide you a quote on the subject:
**The programme of the Fascists, as drafted in 1919, was vehemently anti-capitalistic.***75 The most radical New Dealers and even communists could agree with it. When the Fascists came to power, they had forgotten those points of their programme which referred to the liberty of thought and the press and the right of assembly. In this respect they were conscientious disciples of Bukharin and Lenin. Moreover they did not suppress, as they had promised, the industrial and financial corporations. Italy badly needed foreign credits for the development of its industries. The main problem for Fascism, in the first years of its rule, was to win the confidence of the foreign bankers. It would have been suicidal to destroy the Italian corporations.
(snip)
From the dust-heap of discarded socialist utopias, **the Fascist scholars salvaged the scheme of guild socialism. **Guild socialism was very popular with British socialists in the last years of the first World War and in the first years following the Armistice. It was so impracticable that it disappeared very soon from socialist literature. No serious statesman ever paid any attention to contradictory and confused plans of guild socialism. It was almost forgotten when the Fascists attached it to a new label, and flamboyantly proclaimed corporativism as the new social panacea. The public inside and outside of Italy was captivated. Innumerable books, pamphlets and articles were written in praise of the stato corporativo. The governments of Austria and Portugal very soon declared that they were committed to the noble principles of corporativism. The papal encyclical Quadragesimo Anno (1931) contained some paragraphs which could be interpreted—but need not be—as an approval of corporativism. In France its ideas found many eloquent supporters.
It was mere idle talk. Never did the Fascists make any attempt to realize the corporativist programme, industrial self-government. They changed the name of the chambers of commerce into corporative councils. They called corporazione the compulsory organizations of the various branches of industry which were the administrative units for the execution of the German pattern of socialism they had adopted. But there was no question of the corporazione’s self-government.
The Fascist cabinet did not tolerate anybody’s interference with its absolute authoritarian control of production. All the plans for the establishment of the corporative system remained a dead letter.
Source: Ludwig von Mises,
Socialism: An Economic and Sociological Analysis, (Epilogue). Available
here
I put a quote here, as apparently the word of a mere poster is inadequate.