The HCOB Italy Construction PMI rose to 49.8 in September 2025 from August’s one-year low of 47.7, signaling the mildest decline in activity in three months and hinting that the sector is moving closer to stabilization. New orders increased for the first time in three months, supported by stronger customer interest and public tender wins, while housing activity returned to modest growth. Also, employment and purchasing activity both rose slightly, extending a year-long hiring streak, though firms remained cautious about subcontractor use. On prices, cost pressures eased markedly, with input price inflation falling to its lowest level in over five years, offering some relief to builders. However, business confidence weakened to a 13-month low amid uncertainty over tax bonuses. Sub-sector trends were mixed, with civil engineering seeing the steepest decline and commercial construction contracting at a softer pace, suggesting the worst of the recent downturn may be easing.