According to S&P Global, the Italy Construction PMI fell to 45,4 in June from 49,4 in May, marking a much sharper contraction than the near-stabilisation recorded a month earlier. The Purchasing Managers' Index, a lead indicator that tracks month-on-month changes in total construction activity based on a panel of around 200 Italian construction firms, had approached the 50,0 no-change threshold in May before reversing course in June.
Eleanor Dennison, Economist at S&P Global Market Intelligence, said the Italian construction sector was unable to sustain the path to recovery suggested by May data during June. She added that the sharp reduction in activity was at least partly attributable to extreme heat, but was mostly linked to subdued demand conditions. According to S&P Global, output and new orders both fell at faster rates, reflecting weaker demand, delivery delays and fewer working hours caused by the heat.
The downturn was broad-based across all monitored sectors. Non-residential construction posted the mildest contraction and topped the sector rankings in June, while civil engineering, which had still shown growth in May, swung to the opposite end of the scale, with output falling at the steepest pace in 16 months. Dennison said June PMI data showed a slump in orders, which in turn triggered fresh reductions in purchasing and employment, adding that the decline in jobs was the greatest in just over six years. Employment fell for the first time in 22 months, a reversal firms linked directly to project completions and weaker workloads.
Cost and supply-chain pressures persisted but eased somewhat compared with recent months. Dennison noted that the mid-2026 deadline of the National Recovery and Resilience Plan, the PNRR, had been a major source of uncertainty among Italian constructors in June, compounding pressure already stemming from the situation in the Middle East.