FX.co ★ Italian Construction PMI Returns to Contraction

In November 2025, Italy's HCOB Construction PMI experienced a decline, falling to 48.2 from 50.7 in October, signaling a return to contraction after just one month of growth. This downturn was widespread across all sectors, with residential construction seeing its first drop in three months and the most significant in over a year. Both commercial and civil engineering segments also experienced slight declines, indicating a broader slowdown in momentum. Moreover, new orders decreased for the first time in three months, prompting companies to scale back hiring and purchasing activities. Despite this, employment witnessed a marginal rise for the fifteenth straight month. Vendor delivery times extended for the 14th consecutive month due to inventory shortages and adverse weather conditions. Additionally, input costs rose slightly, driven by increasing raw material and energy prices, although these costs remained below the average annual levels. Business confidence also declined to one of the year's lowest levels, as concerns over tepid demand and diminishing government incentives dampened expectations for recovery.