Italy's construction industry slowed its expansion in June but still maintained a growing trend.

The Italian construction PMI in June decreased slightly from 50.5 in May to 50.2, indicating a narrowing expansion in the industry but still maintaining growth. This is the fourth consecutive month that the index has been above the boom-bust line, mainly driven by an increase in new orders and support from public tenders and the national recovery plan. In terms of sub-sectors, residential construction and civil engineering achieved modest growth, with civil engineering rebounding for the first time after nine months of contraction. Commercial construction, on the other hand, saw its first decline in four months. Employment growth reached a 15-month high, as companies expanded recruitment and resumed using subcontractors due to an increase in projects. Input purchases also slightly increased, but supply chain delays persist due to high demand and shortages. Despite facing challenges, business confidence has reached its highest level since 2024, with strong growth in new orders and marketing efforts supporting optimistic expectations for future activities in the industry.