S&P Global France Construction PMI: Downturn Continues in September

Key Findings:

• Sharp falls in activity and new orders
• Declines in construction material purchasing and employment
• Business confidence slips to nine-month low

France’s protracted construction sector slump showed no signs of abating, latest PMI® survey data from S&P Global showed, as there were once again sharp monthly declines in activity and new projects. Purchases of construction materials were cut markedly, as was employment, while firms’ expectations for the coming 12 months fell to their weakest in the year-to-date.

The headline S&P Global France Construction PMI Total Activity Index is a single measure that tracks changes in total industry activity. Readings below 50.0 indicate a decrease compared to the previous month and the further below 50.0, the faster is the rate of decline being signalled.

At 39.8 in September, the headline measure stayed well beneath the crucial 50.0 mark that separates growth from contraction, indicating yet another steep decline in overall construction activity across France. The latest figure represented an improvement from August’s 37.3, however, which was the lowest level in more than six years.

All three of the monitored types of construction work fell rapidly at the end of the third quarter, albeit with contractions easing in each case. The fastest decline was once again seen in the commercial segment, followed by residential. Meanwhile, civil engineering activity saw its slowest reduction in eight months.

The volume of new projects received by constructors in France decreased during September, extending the current period of falling demand to four-and-a-half years. Panel members remarked on a lack of new tender opportunities, budget limitations at clients and general uncertainty.

The Exporting from the UK section of the Construct UK Directory includes
– International Construction Exhibitions – UK Government Support for Exhibiting Overseas – Identifying Suitable Markets – Agent or Distributor – International Project Lead Sources

Subsequently, the latest survey data signalled a sharp fall in volumes of construction materials purchased. Employment was also an area where firms made cutbacks, stretching the current period of job shedding that began in May 2024. However, subcontractor usage was where retrenchment was at its most pronounced, with the decline here outpacing those seen for job numbers and buying volumes by a clear margin.

With constructors buying less, there were signs that vendor capacity was becoming less stretched as average delivery delays were their least marked since June 2025. Nevertheless, the rate of input cost inflation remained historically elevated, in part due to repercussions from the war in the Middle East.

Regarding the outlook, September survey data pointed to a further decline in business sentiment. As a result, firms’ expectations for activity over the next 12 months were the most pessimistic since last December. Concerns regarding construction demand weighed on confidence, according to anecdotal responses. 

Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence, said, “France’s construction sector is unable to break out of its enduring downturn. It’s hardly surprising to see firms turning even more pessimistic towards the outlook given the array of challenges facing the French domestic economy. To top it off, subdued demand conditions are now being compounded by far tighter financial conditions and still high cost inflation.”

For further details, click here.

Keep up to date with construction sales and marketing news.
Register for our free monthly newsletter:

Subscribe on LinkedIn