French Construction Activity Continues to Fall

2026-01-07 08:43 By Judith Sib-at 1 min. read

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.



News Stream
French Construction Faces Sustained Slump
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.
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French Construction Activity Continues to Fall
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.
2026-01-07
French Construction Sector Remains Under Strain
The HCOB Construction PMI in France rose to 43.6 in November 2025 from 39.8 in the prior month. This marked the 42nd consecutive month of contraction in the French construction sector, and although the downturn eased somewhat, it remained sharp. The downturn was still concentrated in residential construction, but declines in activity softened across all segments, including commercial and civil engineering. New work fell further, extending the current decline in building demand to over three-and-a-half years, though at its slowest pace since March. At the same time, firms continued to reduce their purchases of materials and staffing numbers. Supplier issues intensified in November, despite an absence of demand pressure. On the price front, the rate of input price inflation accelerated to a ten-month high, but stayed well below its historical average. Lastly, French constructors' assessment of activity prospects in the year ahead remained pessimistic.
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