2025.09.0407:38:57UTC+00Italian Construction PMI Falls to 1-Year Low

In August 2025, the HCOB Italy Construction PMI dropped to 47.7 from 48.3 in July, indicating the most pronounced contraction in a year. This decline was mostly driven by significant decreases in housing and commercial activities, which fell to their lowest points in 13 and 24 months, respectively. However, civil engineering offered some optimism with its strongest growth since late 2023. Diminished demand affected sales and led to a reduction in new orders, causing companies to scale back purchases at the quickest rate in a year and cut subcontractor use at the highest rate in over five years. Despite this, employment saw a marginal increase, representing one of the weakest growth rates over the past year. In terms of costs, input prices rose again, yet inflationary pressures remained relatively subdued, while subcontractor rates stayed relatively stable. Supplier delays continued, albeit less severe than previously experienced. Looking forward, business confidence increased slightly from July but was still below the long-term average, indicating persistent caution within the sector.