FX.co ★ French Construction Sector Downturn Intensifies

In May 2025, the HCOB Construction PMI for France declined to 43.1 from 43.6 the previous month. This indicates a continuing significant monthly contraction, extending the sector's downturn into its third consecutive year. Notably, this figure marks the steepest drop since February, with housing remaining a primary weakness, demonstrating yet another significant decrease in construction activity. New orders have been on a consistent decline since April 2022, as respondents from the survey attribute this to clients’ slow decision-making impeding progress. Furthermore, construction companies have persisted in downsizing their workforce, although the rate of job cuts was minimal and the slowest observed in the past nine months. On the price spectrum, input costs saw an increase to a three-month peak, although, overall, inflation remained historically low. Looking forward, French construction firms have become more pessimistic regarding the outlook for the coming year, primarily due to weak demand.