The S&P Global Italy Construction PMI rose to 47.3 in October from 46.5 in September. Although the index remained below the 50.0 threshold that separates expansion from contraction, the latest figure signaled the mildest downturn in three months and was considerably weaker than August’s four-year peak in growth.
The overall improvement occurred despite a sharp drop in new orders, which declined at their fastest rate since August 2024 and posted the second-steepest fall in the past 50 months. Construction activity contracted across all three monitored sectors, with residential building and civil engineering again registering the most pronounced declines.
Companies stayed cautious in their purchasing strategies but nonetheless continued to add to their workforce. At the same time, the ongoing conflict in the Middle East further disrupted supply chains, leading to the greatest lengthening of supplier delivery times in more than two and a half years. The conflict also helped to keep cost pressures elevated, sustaining strong input price inflation.
Looking ahead, business confidence deteriorated and slipped into negative territory for the first time in three months.
