FX.co ★ French Construction Faces Sustained Slump

In January 2026, France's HCOB Construction PMI registered at 43.5, reflecting little change from the previous months of December and November. This figure indicates a continued sharp contraction in the construction sector, marking the prolongation of a severe downturn that commenced in June 2022. Weak conditions were apparent across all monitored areas, which include residential, commercial, and civil engineering, due to persistently subdued demand. While new orders notably decreased, the rate of decline was slower than observed in December. As a result, construction firms reduced their material purchases, though this reduction was milder than any since May 2024. There was a rapid decrease in subcontractor utilization compared to December. For the eighth consecutive month, supplier delivery times extended, yet delays were moderate and the least pronounced since July. Employment levels continued to drop; however, the rate of job loss slowed for the second consecutive month, amounting to only a slight overall decrease. Looking forward, the industry's expectations remained pessimistic, with firms anticipating a further decline in activity over the coming year.