FX.co ★ French Construction Sector Downturn Intensifies

In June 2025, France's HCOB Construction PMI fell to 41.6, down from 43.1 in May, signifying the most significant contraction since February and marking the third year of the sector's downturn. The decline was predominantly influenced by notable reductions in both residential and commercial construction activities, with housing facing the most rapid decline since September 2024. Conversely, civil engineering experienced slight growth, reversing a four-month downward trend. The decrease in new orders intensified, reaching its peak rate for the year, as companies cited fierce competition and weak demand. Consequently, construction firms made further reductions in employment and purchasing. Despite the muted demand, there was an increase in supplier delivery times, and subcontractor rates rose at their fastest rate since October 2023. Lastly, constructor confidence diminished for the third consecutive month, with over 28% foreseeing a decline in activity over the next year, although some firms still expected improvements.