Italian firms: Sales stable, prices up 2.0 percent in 2025

Italian firms with 20 or more employees experienced stable sales in 2025 across industry (excluding construction) and non-financial private services, marking a turnaround after two years of decline.

Selling prices increased by 2.0 percent, a slower pace compared to 2024.

Headcount employment continued its upward trend, accompanied by a slight increase in hours worked.

Demand for funding, though still subdued, saw a modest rise, with credit access conditions remaining stable.

Overall investment accelerated, primarily driven by the manufacturing and energy sectors, while it decelerated in services.

In the construction sector, economic activity returned to growth in 2025, fueled by expansion in public sector projects benefiting from NRRP incentives and an easing decline in private construction.

Employment growth in construction also resumed at a moderate pace.

Looking ahead to 2026, firms anticipate stable demand across all sectors, coupled with an acceleration in selling prices.

However, expectations for investment spending point towards a contraction, particularly in manufacturing and among smaller firms, indicating a cautious outlook despite stable demand.

Employment is forecast to continue rising at a pace consistent with 2025.

For the construction sector, firms expect activity to stagnate in 2026, suggesting a plateau after the recent growth.

Despite this, employment outlooks for construction remain moderately favourable, reflecting a degree of resilience in the labor market even with anticipated flat activity.