FX.co ★ French Construction PMI Slumps to 10-Month Low

In July 2025, France's HCOB Construction PMI declined to 39.7 from 41.6 in June, signaling a more pronounced contraction in the construction sector and marking the most significant downturn since the previous September. This decline highlights persistent weaknesses within the industry, with continued decreases in output, new business, and confidence levels. The commercial construction segment particularly experienced the most significant reduction — the sharpest drop observed since March 2015, excluding the peak COVID-19 lockdown periods. Employment reductions continued for the fifteenth consecutive month, with firms cutting jobs at the fastest rate since May 2020. On the pricing front, input costs increased for the fourth consecutive month, although inflation rates remained historically subdued, consistent with recent trends. Finally, French construction companies expressed a pessimistic outlook for the next 12 months, with sentiment hitting an eight-month low due to concerns about weak demand conditions.