FX.co ★ French Construction Sector Mired in Contraction

The HCOB Construction PMI for France registered at 43.6 in April 2025, showing little variation from March's figure of 43.8. This reflects a continued substantial contraction in the sector, marking nearly three years of downturn. A persistent dearth of new orders limited activity across all areas, although the downturn in residential construction was the least severe since November of the previous year. Consequently, construction companies further reduced their purchasing and staffing levels. Meanwhile, there was a modest increase in operating costs for French builders, though the rate of growth remained significantly below the long-term average from the past 25 years. The sector's ongoing weakness resulted in a notable decline in the use of subcontractors, with their rates decreasing for the fourth month in a row. Despite a continued negative outlook for the next 12 months due to weak order inflows, French construction firms were slightly less pessimistic compared to the average sentiment in 2024.