The HCOB Italy Construction PMI fell to 48.3 in July 2025 from 50.2 in the previous month, marking the first contraction in five months and ending a brief growth streak. The decline was broad-based across all three monitored sub-sectors, with civil engineering seeing the steepest drop. Firms attributed the pullback to lower new orders, weak demand, and site closures. As a result, purchasing volumes fell at the fastest pace in nearly a year, while employment growth slowed and subcontractor usage declined. On the price front, input costs continued to rise due to higher raw material prices, though overall inflationary pressures remained historically subdued. Meanwhile, supplier delays persisted but showed signs of easing. Lastly, business sentiment deteriorated to a six-month low, reflecting concerns over sliding demand. Still, expectations for the year ahead stayed mildly positive, with Italy’s outlook seen as more resilient than in other major eurozone economies.