The S&P Global Italy Construction PMI rose to 49.4 in May 2026 from 44.8 in April, when it had reached its lowest level in more than three and a half years. This latest reading signals the mildest contraction in three months and indicates that conditions are moving closer to stabilization. Overall activity and new orders continued to decline, but at the slowest pace since February. Weakness remained concentrated in residential and commercial building, while civil engineering returned to growth.
Firms reported that subdued demand, elevated uncertainty, and difficulties in winning tenders were the main factors weighing on activity. At the same time, business confidence strengthened, with companies turning optimistic about the 12-month outlook on expectations of securing new contracts.
In the labor market, employment growth accelerated to its fastest rate since January, even as the use of subcontractors decreased. However, supply-chain disruptions and cost pressures related to the conflict in the Middle East persisted. Input prices rose at the second-fastest pace since September 2022, though the rate of increase eased somewhat compared with April.
