FX.co ★ French Construction Sector Suffers Setback

The S&P Global France Construction PMI fell to 37.3 in August 2026 from 41.5 in July, indicating a sharper contraction in construction activity nationwide and marking the steepest downturn since May 2020. Activity declined across all three main construction segments, with residential and commercial building posting the largest falls. New orders also continued to shrink, recording their fastest decline in four months and extending the downturn that began in April 2022. Employment decreased for the 28th consecutive month, with the rate of job losses accelerating. Purchasing activity also weakened, although the decline in buying volumes was the smallest in six months. At the same time, input cost inflation remained well above the survey average and rose for the first time since April. Supply chain conditions stayed difficult, but delivery delays shortened to their lowest level in six months. Finally, French construction firms became more downbeat about the outlook, with expectations for activity over the coming year falling to their weakest since April.