French construction downturn slows, but remains sharp

French construction activity continued to contract in January 2025, though at the slowest pace since November 2023.

French construction downturn slows, but remains sharp

The HCOB Construction PMI rose to 44.5 from 42.6 in December. While housing and commercial building experienced significant, though less severe, declines, growth in civil engineering helped to mitigate the overall sector downturn. New orders continued to fall, albeit at the softest rate since September. Material purchases also declined, though at the slowest pace in eight months. Supplier delivery times lengthened to a near one-year high. Employment and subcontractor use decreased, continuing a nearly two-year trend of workforce reduction (with the exception of April 2024).

French construction costs soar, outlook grim

Input cost inflation accelerated to a 16-month high. Business sentiment regarding the 12-month outlook for activity remained pessimistic.