France construction PMI improves but sector remains in contraction

The S&P Global France Construction PMI rose to 42.2 in October 2024, up from a multi-year low of 37.9 in September.

France construction PMI improves but sector remains in contraction

While it marked the highest reading in five months, it still indicated a significant contraction in the sector. Residential construction activity declined at its slowest pace in ten months, civil engineering showed moderate contraction, and commercial construction faced the steepest drop in three months. New orders continued to fall sharply, driven by weak demand, fewer tenders, heightened competition, and reduced public sector projects. As a result, both purchasing activity and employment saw further declines.

France construction PMI: rising prices, dimming outlook for 2024

On the pricing front, input price inflation rose to a ten-month high but remained well below the long-term average. Looking ahead, business sentiment turned more negative, with companies becoming increasingly pessimistic about the 12-month outlook, reaching its lowest level since December 2023.