FX.co ★ Italy’s Construction Sector Nears Growth Zone as July HCOB PMI Climbs to 49.1

Italy’s construction sector showed a marked improvement in July, with the HCOB Italy Construction Purchasing Managers’ Index (PMI) rising to 49.1, up from 45.4 in June 2026. The latest data, updated on 6 August 2026, indicate a significant month-over-month recovery, although the index remains just below the 50.0 threshold that separates contraction from expansion.

The July figure suggests that the pace of decline in Italy’s construction activity has slowed sharply compared with June, when the sector was experiencing a more pronounced downturn. On a month-over-month basis, the “actual” reading of 49.1 in July compares favorably to June’s 45.4, which itself reflected weaker conditions relative to the month before.

While the sector is still technically in contraction territory, the move toward the 50.0 level points to stabilizing conditions and a potential turn toward growth if the upward trend continues in the coming months. Market participants and policymakers will be watching subsequent readings closely to see whether July’s improvement marks the start of a sustained recovery in Italy’s construction industry.