Italian construction sector faces rising material costs despite PNRR backing

The Italian construction industry is maintaining activity with strong support from the National Recovery and Resilience Plan (PNRR), but firms report significant cost pressures. Price increases of up to 20 % have been recorded for bitumen, polymers, transport and energy‑intensive materials such as bricks, driven by higher raw‑material and energy prices linked to geopolitical tensions in the Middle East. Import prices for metals and minerals rose 8.8 % in March, while aluminium prices jumped nearly 50 % year‑on‑year.

Credit costs have also risen, with the average interest rate for companies reaching 3.65 % in April 2026, adding further strain to small firms. Industry leaders warn that the sector’s growth could slow over the summer unless stable, long‑term incentives are provided to offset these cost surges and ensure the timely completion of PNRR‑funded projects.