FX.co ★ French Construction Sector Growth Hits 5-Month High

The S&P Global France Construction PMI rose to 41.5 in July 2026 from 38.2 in June, reaching its highest level since February. However, the index remained well below the neutral 50 mark, indicating that the sector as a whole is still in contraction. Commercial construction was again the weakest segment, recording a sharper downturn than both residential and civil engineering activity.

New orders continued to decline rapidly, with firms reporting subdued client demand, greater customer caution, and a loss of competitiveness. Construction companies also kept trimming their workforces, extending a sequence of job cuts that has been ongoing since May 2024.

On the cost front, input price inflation stayed elevated and was well above the levels recorded throughout 2025. Looking ahead, French builders remained pessimistic about activity over the coming twelve months. Although sentiment improved slightly compared with the previous four months, confidence remained deeply negative by historical standards.