FX.co ★ Italian Construction PMI Nears Stabilization in September

In September 2025, the HCOB Italy Construction PMI increased to 49.8, up from a one-year low of 47.7 in August. This change indicates the mildest decline in construction activity over the past three months and suggests a trend towards stabilization in the sector. New orders experienced a rise for the first time in three months due to heightened customer interest and the success in securing public tenders, while housing activity modestly returned to growth. Additionally, there was a slight increase in both employment and purchasing activities, continuing a hiring trend that has persisted throughout the year. Despite this, firms remain cautious regarding the engagement of subcontractors. On the pricing front, cost pressures have significantly reduced, with input price inflation dropping to its lowest point in more than five years, bringing some respite to builders. Nonetheless, business confidence has declined to a 13-month low due to uncertainties concerning tax bonuses. Across different sub-sectors, trends varied: civil engineering faced the most significant decline, while commercial construction saw a reduction at a less severe rate, indicating a potential easing of the recent downturn.