Italy construction PMI edges up, sector faces ongoing challenges

The HCOB Italy Construction PMI increased to 48.2 in October 2024, up from 47.8 in September, marking the seventh consecutive month of contraction, though at the slowest rate since May.

Italy construction PMI edges up, sector faces ongoing challenges

New orders continued to decline, but the pace slowed due to weak demand and adverse weather conditions. Civil engineering experienced the sharpest contraction, while residential and commercial building activity saw more modest declines. On a positive note, employment in the sector rose for the second month in a row, with the most robust growth since March. However, purchasing activity remained sluggish, reflecting weak new business trends.

Input price inflation eases, business sentiment remains cautiously optimistic

Input price inflation eased to its lowest rate in nearly four and a half years, providing some relief to firms despite longer delivery times. Looking ahead, business sentiment remained optimistic, buoyed by expectations of new projects and continued business inflows, though overall confidence remained below the historical average.