The HCOB Italy Construction PMI edged down to 50.9 from 51.2 in December 2024, marking the sector's second consecutive month of expansion. Residential construction was the primary driver of growth, experiencing its fastest expansion in 32 months. However, commercial building reversed its gains, and civil engineering saw its sharpest decline in 28 months. New orders increased for the second consecutive month, boosted by contract wins, and employment continued its five-month growth streak, with more full-time hires. Purchasing activity expanded for the first time in nearly a year, but supply chain issues worsened vendor performance.
Italy construction: inflation down, outlook mixed
Input cost inflation eased slightly from the previous month but remained below historical averages, even as suppliers continued to raise prices. Looking ahead, businesses remained cautiously optimistic about new contracts, though confidence was below historical norms.
