The S&P Global Italy Construction PMI dropped to 45.4 in June 2026 from 49.4 in May, indicating a sharper contraction in construction activity after tentative signs of stabilization the previous month. Both output and new orders fell at faster rates, reflecting weaker demand, delivery delays, and reduced working hours caused by extreme heat.
Activity declined across all segments. Civil engineering recorded the steepest downturn in 16 months, while commercial construction saw the mildest contraction. Employment fell for the first time in 22 months and at the quickest pace in more than six years, as firms cut staff in response to project completions and softer workloads.
On the cost side, input price inflation slowed to a four-month low but remained elevated, driven by higher raw material and oil prices associated with the conflict in the Middle East. Finally, business confidence deteriorated amid continued uncertainty over the deadline for the National Recovery and Resilience Plan (PNRR).
