FX.co ★ Italian Construction PMI Returns to Growth in October

The HCOB Italy Construction Purchasing Managers' Index (PMI) increased to 50.7 in October 2025, up from 49.8 the month before, signifying its first growth in four months. This modest resurgence was driven by increased activity in the commercial and housing sectors, while the civil engineering segment moved closer to stabilization. The rise in new business inflows was fueled by heightened client interest and new contract acquisitions, marking the fastest pace of order growth since June. Despite this uptick in demand, businesses exercised caution; purchasing volumes remained unchanged, and employment growth decelerated to its slowest rate in over a year, indicative of tentative hiring amid ongoing uncertainty. Supply chain challenges continued, as longer delivery times—exacerbated by adverse weather and logistical issues—persisted. Meanwhile, input cost inflation rose slightly, though it stayed below the year's average. On a positive note, business confidence soared to a 17-month peak, bolstered by expectations of stronger demand and an increase in future orders.