FX.co ★ Italian Construction Sector Stalls in March

In April 2025, the HCOB Italy Construction PMI indicated a slowdown, declining to 50.1 from 52.4 in March. This suggests that the sector nearly stagnated following a robust recovery in the previous month. Contributing to this downturn were only slight increases in new orders and purchasing activities, coupled with continued supply chain issues causing delivery delays. The commercial construction sector remained a positive exception, experiencing growth for the second consecutive month. In contrast, both the residential and civil engineering sectors faced contraction, with civil engineering experiencing its steepest decline in eight months. Nonetheless, employment within the construction industry increased at the fastest rate seen in 2025, fueled by the initiation of new projects and the need to expand capacity. The majority of these new positions were temporary. Despite the overall stagnation, slightly improved confidence was observed among construction firms, supported by recent business successes, yet sentiment remains low in the face of ongoing economic and geopolitical challenges. Hopes for further rate cuts by the European Central Bank are anticipated to foster future growth in the sector.