French Construction PMI Slumps to 10-Month Low

The HCOB Construction PMI in France fell to 39.7 in July 2025 from 41.6 in the previous month, indicating a deeper contraction in construction activity and marking the sharpest downturn since last September.

The deterioration reflects ongoing weakness across the sector, driven by sustained declines in output, new business, and confidence levels.

Across all types of construction, the commercial segment experienced the most pronounced drop — the steepest since March 2015, excluding the peak COVID-19 lockdown periods.

Workforce reductions continued for the fifteenth straight month, with companies cutting jobs at the fastest pace since May 2020.

On the cost side, input prices rose for the fourth straight month, although the rate of inflation remained historically muted, as has been the case throughout the current sequence.

Finally, French constructors were pessimistic about the 12-month outlook, with sentiment falling to an eight-month low due to concerns over weak demand conditions.