French Construction Sector Contraction Eases

2025-02-06 09:02 By Luisa Carvalho 1 min. read

The HCOB Construction PMI in France came in at 44.5 in January 2025, up from December's 42.6, indicating the slowest rate of decline in French construction activity since November 2023 but still sharp overall.

Housing and commercial building saw significant declines, but slower contractions and a rise in civil engineering reduced the overall sector decline to its weakest in over a year.

Demand remained weak, with new orders continuing to fall, albeit at the softest rate since last September.

Firms subsequently reduced material purchases at a marked pace, though it was the softest decline in eight months, while supplier delivery times lengthened to a near one-year high.

Employment and subcontractor use also fell, with workforce numbers declining steadily for almost two years, excluding April 2024.

Cost pressures intensified in January, with input price inflation reaching its steepest in 16 months.

Looking ahead, businesses remained pessimistic about the 12-month activity outlook.



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