French Construction Sector Contraction Accelerates

The HCOB Construction PMI in France edged up to 43.9 in February 2026 from 43.5 in January, showing the construction sector was still contracting, but at its slowest pace in six months. Downturns in commercial and residential building moderated, partially offsetting the sharper drop in civil engineering. Meanwhile, new orders fell further and at a solid pace, amid slow market conditions and generally subdued demand. This led to further reductions in material purchases and employment. On the price front, input price inflation cooled to its softest in three months and was well below the average of the survey. Looking ahead, confidence in the outlook improved markedly in February, supported by optimistic sales expectations and healthier project pipelines.

The HCOB Construction PMI in France came in at 43.5 in January 2026, broadly unchanged from December and November. The data signaled another sharp contraction in construction sector activity, extending the severe downturn that began in June 2022. Weak conditions persisted across all monitored segments, namely residential, commercial, and civil engineering, amid ongoing subdued demand. New orders fell significantly, though less than in December, prompting constructors to scale back material purchases; the reduction, however, was the softest since May 2024. Subcontractor usage declined at a markedly faster pace than in December. Supplier delivery times lengthened for the eighth consecutive month, though delays were moderate and the weakest since July. Employment levels continued to fall, but job losses eased for a second month and were only marginal overall. Looking ahead, expectations remained bleak, with firms forecasting a further decline in activity over the next 12 months.

The HCOB Construction PMI in France edged down to 43.4 in December 2025 from 43.6 in November, marking the 43rd consecutive month of contraction. Activity was weighed down by a steep decline in new orders, reflecting persistently weak demand conditions and fewer calls for tender. In response, firms continued to scale back operations, cutting both employment and purchasing volumes. Among the three subsectors, civil engineering was the main drag, with activity declining at the fastest rate since last February. Meanwhile, residential building work dropped at the slowest pace since August 2022, whereas commercial construction recorded its softest fall in four months. On the price front, input cost inflation rose for a third month, although the pace of increase remains moderate by historical standards. Looking ahead, sentiment among French construction firms deteriorated further, with expectations for activity over the next 12 months falling to the lowest level since October 2014.