French Construction Sector Downturn Softens

The HCOB Construction PMI in France rose to 46.7 in August 2025, from July’s ten-month low of 39.7, signaling a notable easing in the sector’s downturn. Across the three main categories of construction activity, housing and commercial building both recorded slower rates of contraction, while civil engineering stood out as an area of strength, expanding for the second time in the past three months. New orders continued to fall, though the pace of decline was the softest since April. Cost-cutting remained a prominent theme, however, with purchasing volumes and employment decreasing markedly. The rate of job losses was the steepest since May 2020. Despite weaker demand for inputs, supplier performance deteriorated further, with average lead times lengthening to the greatest extent in 18 months. Looking ahead, sentiment remained downbeat, with surveyed firms expecting activity levels to be lower in a year’s time.