FX.co ★ French Construction Activity Continues to Fall

The HCOB Construction PMI for France marginally declined to 43.4 in December 2025, down from 43.6 in November, marking the 43rd month in a row of contraction in the sector. This persistent downturn is attributed to a significant fall in new orders, indicative of continuously weak demand and a reduction in tender invitations. Consequently, companies have continued to downsize operations by reducing both workforce levels and purchasing volumes. Among the three sub-sectors, civil engineering faced the most considerable decline, experiencing its sharpest downturn since last February. In contrast, the decrease in residential building activity was at its slowest since August 2022, while commercial construction faced its smallest decline in four months. Regarding costs, input price inflation has been on the rise for the third consecutive month; however, the rate of increase remains moderate when compared to historical trends. Looking forward, the outlook among French construction companies has worsened further, with their expectations for the coming year's activities slumping to their lowest point since October 2014.