French Construction Downturn Deepens

The S&P Global France Construction PMI fell to 38.8 in October 2026, down from 39.8 in the previous month. It extended the sector's downturn that began in June 2022, reflecting a continued sharp decline in new work, which weighed on purchasing volumes and employment. Despite weaker demand for construction materials, supplier delivery times lengthened further. On the price front, input cost inflation accelerated to a five-month high. All three construction segments recorded steep declines, with residential construction remaining the worst-performing sub-sector. Civil engineering activity contracted at a faster pace, while commercial construction saw a substantial decline, albeit at the slowest rate since May. Looking ahead, French construction companies remained pessimistic about the year-ahead outlook, citing uncertainty surrounding the 2027 presidential election as a factor likely to weigh on activity.

The S&P Global France Construction PMI rose to 39.8 in September 2026 from 37.3 in August, remaining well below the 50 threshold, signaling a continued sector-wide downturn. Commercial construction was once again the weakest segment, posting a steep decline followed by residential construction, while civil engineering activity posted its slowest contraction in eight months. New projects continued to fall, extending the downturn in demand to four-and-a-half years, amid a lack of new tenders, client budget constraints, and general uncertainty. Firms also cut construction material purchases and employment, extending the current period of job shedding that began in May 2024. Meanwhile, input cost inflation remained historically elevated, partly due to repercussions from the war in the Middle East, while delivery delays eased to their lowest since June 2025. French constructors also became more pessimistic about the year ahead, with expectations falling to their weakest since December 2025.

The S&P Global France Construction PMI slipped to 37.3 in August 2026 from 41.5 in July, signalling a faster contraction in construction activity across France, the sharpest since May 2020. Activity fell across all three construction categories, with residential and commercial construction recording the largest declines. New orders continued to fall, posting their fastest decline in four months and extending the downturn since April 2022. Firms cut jobs for the 28th month running, with the pace of reductions accelerating. Purchasing volumes declined as well, though the fall was the weakest in six months. Meanwhile, input cost inflation remained well above its survey average and picked up for the first time since April. Supply chain conditions remained challenging, but delivery delays eased to their lowest in six months. Lastly, French constructors grew more pessimistic about the year ahead, with expectations for business activity falling to their lowest since April.