FX.co ★ Italian Construction PMI Slips Deeper at Year-End

The HCOB Italy Construction PMI decreased to 47.9 in December 2025, down from 48.2 in November, indicating a moderate yet increasingly rapid contraction in construction activities at the end of the year. This figure represents the lowest since August, with sustained declines across all three sub-sectors. The housing sector experienced the most significant drop, while commercial and civil engineering activities weakened to a lesser extent. New orders saw a reduction for the second month in a row, at one of the most accelerated paces in 2025, prompting companies to scale down their purchasing activities. Employment experienced a slight uptick, continuing a trend of subdued hiring, although the use of subcontractors decreased. Supplier delivery times were extended due to raw material shortages, and input costs saw their sharpest rise since May because of increased energy and material prices. Despite this, overall cost pressures remained below long-term averages. Business confidence showed a modest improvement, driven by anticipated new projects in 2026, but sentiment remained historically low due to weak demand.