2026.10.0607:50:19UTC+00French Construction Downturn Persists

The S&P Global France Construction PMI rose to 39.8 in September 2026 from 37.3 in August, but remained firmly below the neutral 50 mark, indicating a continued, broad-based downturn in the sector. Commercial construction remained the weakest area, recording a sharp decline, followed by a substantial fall in residential activity. In contrast, civil engineering work saw its slowest contraction in eight months.

New projects continued to decrease, extending the slump in demand to four and a half years, amid a shortage of new tenders, tighter client budgets, and heightened uncertainty. In response, firms reduced both their purchases of construction materials and their staffing levels, prolonging the period of job shedding that began in May 2024.

Input cost inflation stayed historically elevated, partly reflecting the ongoing impact of the conflict in the Middle East, although delivery delays eased to their lowest level since June 2025. Looking ahead, French construction companies became more downbeat about future activity, with business expectations falling to their weakest level since December 2025.