FX.co ★ French Construction Downturn Deepens

In September 2025, the HCOB Construction PMI for France decreased to 42.9, down from 46.7 in August, signifying an intensified contraction and continuing the sector’s decline for 40 consecutive months. Among the primary categories, residential building saw the sharpest downturn in three months, while commercial construction experienced a notable deterioration, and civil engineering, after a brief improvement in August, returned to contraction. There was a faster decrease in new orders, indicative of diminished client demand amidst languid business conditions. Companies persisted in downscaling their operations, marking the 29th consecutive month of declining purchasing volumes, accompanied by ongoing job reductions, albeit with slightly reduced losses. Cost pressures remained subdued as input price inflation eased to its lowest in five months. Looking forward, business confidence further deteriorated, with the future activity index hitting a ten-month low, influenced by political uncertainties, fewer tender opportunities, and a scarcity of new projects impacting expectations.