Italy Construction Activity Falls at Softer Pace in October

2026-11-05 08:42 By Judith Sib-at 1 min. read

The S&P Global Italy Construction PMI rose to 47.3 in October from 46.5 in September.

The latest reading was the least marked in three months and far softer than August's four-year record.

The improvement came despite a sharp decline in new orders, which fell at the fastest pace since August 2024 and recorded their second-steepest drop in 50 months.

Construction activity continued to contract across all three monitored segments, with residential building and civil engineering again experiencing the steepest declines.

Firms remained cautious about purchasing activity but continued to increase employment.

In addition, the ongoing conflict in the Middle East further disrupted supply chains, with supplier delivery times lengthening to the greatest extent in more than two and a half years.

The conflict was also a contributing factor behind still-elevated cost inflation.

Looking ahead, business confidence weakened, slipping into negative territory for the first time in three months.



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Italy Construction Activity Falls at Softer Pace in October
The S&P Global Italy Construction PMI rose to 47.3 in October from 46.5 in September. The latest reading was the least marked in three months and far softer than August's four-year record. The improvement came despite a sharp decline in new orders, which fell at the fastest pace since August 2024 and recorded their second-steepest drop in 50 months. Construction activity continued to contract across all three monitored segments, with residential building and civil engineering again experiencing the steepest declines. Firms remained cautious about purchasing activity but continued to increase employment. In addition, the ongoing conflict in the Middle East further disrupted supply chains, with supplier delivery times lengthening to the greatest extent in more than two and a half years. The conflict was also a contributing factor behind still-elevated cost inflation. Looking ahead, business confidence weakened, slipping into negative territory for the first time in three months.
2026-11-05
Italy Construction Downturn Eases in September
The S&P Global Italy Construction PMI rose to 46.5 in September 2026, picking up from a four-year low of 41.7 in the previous month. The improvement was driven by a less marked decline in new construction orders, while employment also recorded a modest increase. Meanwhile, lead times continued to lengthen, reflecting the impact of the war in the Middle East, with logistical and transport disruptions and stock shortages weighing on supply-chain performance. On the price front, input-cost inflation accelerated to a four-month high, driven by higher outlays for raw materials, fuel, transport and energy. Among subsectors, all remained in contraction, with the steepest decline recorded in housing, while commercial construction signaled only a slight contraction. Looking ahead, Italian construction companies remained optimistic about output over the next 12 months, although confidence stayed below its long-run average.
2026-10-06
Italy Construction Activity Falls to 4-Year Low
The S&P Global Italy Construction PMI fell to 41.7 in August 2026 from 49.1 in the previous month, marking its fastest fall since August 2022, as construction activity declined sharply amid a solid drop in new work. The downturn was concentrated in housing and commercial construction, while civil engineering activity fell only modestly. New orders declined for the fifth time in six months, with firms citing weaker demand, geopolitical uncertainty, permit delays, staff shortages, and the end of the National Recovery and Resilience Plan (PNRR). Purchasing activity fell at its fastest pace in over three and a half years, while supply-chain pressures intensified. Meanwhile, cost inflation eased to its softest pace since the start of the year. Employment continued to rise slightly, but subcontractor use fell sharply. Business confidence returned to positive territory, supported by strong order pipelines, though concerns over the PNRR's end and weaker investment persisted.
2026-09-04