08.04.202607:37:51UTC+00Italy Construction PMI Falls Back into Contraction

The S&P Global Italy Construction PMI declined to 46.8 in March 2026 from 50.4 in February, indicating a renewed contraction in the sector and marking the sharpest downturn since August 2024. Activity weakened across all key segments—residential, commercial, and civil engineering—signaling a broad-based slowdown.

The downturn was primarily driven by softer demand and a renewed drop in new orders, which erased February’s brief recovery. In response to lower workloads, firms cut back on purchasing activity. Supply chain conditions also deteriorated, with lead times lengthening amid continuing disruptions related to the conflict in the Middle East.

Cost pressures intensified, as input price inflation accelerated to its highest rate since October 2022, fueled by rising energy and raw material costs. Despite the weaker operating environment, employment continued to edge higher, supported by firms’ efforts to complete ongoing projects.

Looking ahead, business confidence turned negative for the first time in more than three years, reflecting growing caution among firms regarding the sector’s outlook.