FX.co ★ Italian Construction Sector Edges Down

The HCOB Italy Construction PMI experienced a slight decline to 50.2 in June 2025 from 50.5 in May, indicating a continued yet minimal expansion within the sector. Despite this deceleration, the sector remained in growth mode for the fourth consecutive month, propelled by an increase in new orders and bolstered by public tenders and the NRRP. The housing and civil engineering segments witnessed slight growth, with civil engineering making a recovery after experiencing nine months of shrinkage. Conversely, the commercial construction segment declined for the first time in four months. Employment surged at its fastest rate in 15 months, as companies expanded their workforce and resumed the use of subcontractors, responding to an influx of projects. Input purchasing saw a slight uptick, reversing a previous decline, although supply chain delays continued due to increased demand and shortages of stock. In spite of these ongoing challenges, business confidence surged to its peak since May 2024, with companies showing increased optimism regarding future activities, buoyed by robust growth in new orders and enhanced marketing strategies.