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04.09.202607:30:00UTC+00Italy’s Construction Sector Slumps as HCOB PMI Falls Deep into Contraction in August

Italy’s construction industry saw a sharp deterioration in activity in August 2026, with the HCOB Italy Construction PMI dropping to 41.7, down from 49.1 in July 2026. The latest reading, updated on 4 September 2026, signals a much steeper contraction for the sector on a month-over-month basis.

July’s PMI of 49.1 had already indicated a marginal decline compared with the previous month, sitting just below the 50.0 threshold that separates expansion from contraction. August’s move to 41.7, however, marks a significant acceleration in the downturn, suggesting a broad-based weakening in construction activity across Italy.

The data, measured on a month-over-month comparison, underscores a worsening trend: while the previous month hinted at mild softness in the sector, the current reading points to more pronounced strain in construction output and related economic momentum. Investors and policymakers will be watching upcoming releases closely for signs of stabilization or further weakening in the months ahead.

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