The S&P Global France Construction PMI increased to 39.6 in May 2026 from 38.1 in April, indicating a modest improvement in operating conditions. The pace of decline in both construction activity and new orders slowed, and the downturn in commercial and residential building also eased. However, the index remained well below the neutral 50 mark, and overall construction activity was still among the weakest levels recorded since the pandemic. The sector was particularly weighed down by the steepest contraction in civil engineering work in nearly five and a half years.
Persistent weak demand led firms to cut both permanent and temporary staff, and construction companies continued to scale back their purchasing activity. Input cost inflation remained elevated, holding at its second-highest rate in three and a half years, largely driven by higher energy prices associated with the conflict in the Middle East.
Looking ahead, firms remained pessimistic about the outlook for the next 12 months, citing subdued tender activity, intense competitive pressures, and continued weak demand.
