Italy and Germany Construction Sectors Contract in September
S&P Global data shows construction sectors in Italy and Germany both contracted in September, though Italy's decline eased while Germany's downturn deepened.
Construction activity declined in both Italy and Germany during September, according to data released by S&P Global. While both nations experienced contractions, the trajectory of the downturn differed significantly between the two economies.
In Italy, the Construction PMI Total Activity Index rose to 46.5 from 41.7 in August. Although this marked the seventh consecutive month of contraction, the pace of the decline eased. Italian firms reported accelerating cost inflation and supply chain pressures, yet they maintained a positive 12-month outlook supported by public bid pipelines.
Germany experienced a more severe downturn, with its Purchasing Managers' Index falling to 43.5 from 48.7 in August. This decline was driven by a steep reduction in housing projects, representing the largest drop since December 2024. This slump led to a subsequent decrease in material purchases and employment. Unlike Italian firms, German constructors expect activity levels to continue falling over the coming year.
