Italian Construction PMI Contracts Further in January

The HCOB Italy Construction PMI edged down to 47.7 in January 2026 from 47.9 in December, signaling a third straight month of contraction and slightly faster declines in activity, new orders, and purchasing. Housing remained the weakest segment, posting a substantial drop and weighing most on the headline index, while commercial building slipped modestly and civil engineering was the only area to record a small uptick. Order books fell at one of the steepest rates in over a year as uncertainty dampened demand, prompting firms to scale back input buying. Despite softer workloads, employment growth accelerated to a seven-month high as companies favored permanent staff. Input cost inflation picked up due to higher raw material and energy prices, though overall pressures stayed below long-run averages. Business confidence weakened but remained marginally positive, with firms citing expected future projects even as uncertainty around the PNRR deadline tempered sentiment.