Italy’s Construction Sector Shows Resilience in August 2023

The latest data on construction production in Italy for August 2023 indicates a notable uptick in destagionalized production, showing a positive trajectory for the sector.

Key Findings:

  1. Destagionalized Growth (August 2023):
    • The destagionalized index of construction production is estimated to have grown by 2.1% compared to July.
  2. Quarterly Performance (June-August 2023):
    • Over the average of the second quarter (June-August), construction production experienced a marginal decline of 0.4% compared to the previous quarter.
  3. Year-on-Year Trends:
    • On a year-on-year basis, both the seasonally adjusted (accounting for calendar effects) and the unadjusted indices recorded a 0.3% contraction.
  4. Performance in the First Eight Months of 2023:
    • From January to August 2023, the seasonally adjusted index saw a decrease of 2.1%, while the unadjusted index dropped by 2.2%.

Commentary: In August, the destagionalized index of construction production rebounded, showing resilience after the contraction observed in July. Despite this positive monthly trend, the sector continues to face challenges on a year-on-year basis, marking the seventh consecutive decline. However, the contraction is notably less severe compared to previous months, hinting at potential stabilization.