Construction in Italy: Only a timid rebound in 2015

Since 2006, across segments (residential, non-residential, civil engineering), the decline in the value-added of the construction sector has been massive: -25%, that is to say EUR25bn. The construction sector's output has decreased by -18% and -8% in real and nominal terms respectively from 2006 to 2014, reaching a record low.

As a consequence, the average net profitability of construction companies turned negative in 2013 (-0.2%) and was only slightly positive in 2014 (+0.1%).

Payment terms continued to grow this year (+17 days) reaching 120 days in 2014, now exceeding the national average (116 days). The stabilization of the economic situation with GDP forecast at +0.3% in 2015 could stimulate demand, activity and even prices. A slight rebound of +1.4% in value is expected for the Italian construction sector in 2015. The recovery of demand for new dwellings and infrastructure projects, and sales of building materials both domestically and abroad explain this rebound. Some weaknesses will remain such as weak financial conditions and limited public support.

Construction in Italy: Only a timid rebound in 2015 - Report