The French construction sector continued its downward trend as the HCOB France Construction Purchasing Managers' Index (PMI) decreased further in July. The index, which measures the health of the construction industry, dropped to 39.7, marking a significant decline from June's reading of 41.6. This marks the second consecutive month of contraction for the sector, as numbers remain below the 50.0 mark that separates growth from contraction.
This latest update came on August 6, 2025, and reflects a challenging period for the French construction industry. The July indicator of 39.7 reflects a steeper decline than seen in previous months, suggesting increasing headwinds facing the industry. Economists note that the reduction in July follows a similar pattern of decline observed in June, where a month-over-month fall was already established.
In viewing these figures, analysts posit several contributing factors such as potential economic conditions, fluctuating demand for building projects, and broader market uncertainties affecting business confidence. As the sector grapples with these challenges, stakeholders are likely keeping a close watch on subsequent months for signs of stabilization or recovery.
