The HCOB Italy Construction PMI rose to 50.7 in October 2025 from 49.8 in the previous month, marking its first expansion in four months. The modest rebound was led by commercial and housing activity, while civil engineering edged toward stabilization. Stronger client interest and fresh contract wins lifted new business inflows, driving the fastest growth in orders since June. Despite improving demand, companies remained cautious: purchasing volumes were flat, and employment growth slowed to its weakest pace in over a year, reflecting measured hiring amid lingering uncertainty. Supply chain pressures persisted, with longer delivery times caused by adverse weather and logistical disruptions, while input cost inflation picked up slightly but stayed below the year’s average. Encouragingly, business confidence climbed to a 17-month high, supported by expectations of firmer demand and additional order inflows ahead.