Confidence in the Italian construction industry improves in February 2026

According to preliminary data from the Italian National Institute of Statistics (Istat), in February 2026, consumer price inflation in Italy rose to its highest level in five months; It rose to 1.6% from 1% in January. Meanwhile, the construction productivity index recorded volatile data. According to Istat, construction output rose 5.3% year-on-year in December 2025, following 2.5% YoY growth in November and 7.3% YoY growth in October 2025. Overall, the average construction productivity index growth decreased from 6.5% in 2023 to 5.29% in 2023 and 5.225% in 2025.

Industrial production in 2026 is expected to be affected by weakness in the residential construction sector, amid a significant decline in residential construction activity, due to the permanent cessation of the “Superbonus” tax incentive on January 1, 2026. 2024 and further to 65% in 2025. The 110% super bonus has officially ended by January 2026 and has been replaced by lower rate deductions. In addition to the closure of super bonus schemes, higher interest rates, declining building permits, and rising construction costs are also expected to affect the Italian construction industry’s output in 2026.

According to Istat, the construction cost index for residential buildings increased by 2.3% in December from 2025, after annual growth of 2.1% in each of the previous two months. In annual terms, the average construction cost index for residential buildings increased by 1.8% in 2025, after a slight decrease of 0.1% in 2024 and a 2.1% increase in 2023. The war in the Middle East is expected to lead to further increases in energy prices, thereby hurting the construction sector.

Despite the weakness in the residential construction sector, however, investment in civil engineering works is expected to provide some relief to the Italian construction industry in 2026. This can be reflected by the improvement in the construction confidence index in Italy in February 2026, with mixed signs recorded in all sectors. According to Istat, construction industry confidence rose 3.3% month-on-month (MoM) in February 2026, fell 2.9% in January 2026 and 1.9% in December 2025. This development is due to increased sentiment in civil engineering works and specialized construction activities.

By segment, confidence in specialized construction activities increased by 5.8% MoM, while civil engineering works increased slightly by 0.8% MoM in February 2026. This development is due to investments in projects linked to Italy’s Recovery and Resilience Plan, whose official deadline is 31 August 2020 for the year 2026. Residential renovations, building confidence in the construction sector fell 2.4% MoM in February 2026, after a 2.7% decline MoM in January 2026. In aggregate terms, confidence in the construction industry fell by 2.2% YoY in the first two months of 2026, from January 202013 to February 2020. 2026. By segment, it increased by 1.5% YoY for specialized construction activities, while it decreased by 2.8% YoY for civil engineering works and 10.5% YoY for construction activities.

“Italian Construction Industry Confidence to Improve in February 2026” was originally developed and published by Global Construction Network, a brand owned by Global Data.

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