FX.co ★ French Construction Sector Downturn Softens

In August 2025, the HCOB Construction PMI in France saw a rise to 46.7 from a ten-month low of 39.7 in July, indicating a significant easing in the sector's downturn. Within the three principal categories of construction activity, both residential and commercial building experienced a slower rate of contraction, while civil engineering emerged as a strong performer, marking its second expansion in three months. Although new orders continued to decline, the rate was the slowest it has been since April. Cost reduction was a key focus, leading to substantial decreases in purchasing volumes and employment. The job loss rate reached its highest since May 2020. Despite a decrease in demand for inputs, supplier performance worsened, with average lead times extending to their longest in 18 months. Looking forward, sentiment remained pessimistic, with firms surveyed anticipating lower activity levels in a year's time.