S&P Global France Construction PMI: Sector Downturn Eases in July

Key Findings:

• Building activity declines, albeit at weakest pace since February
• Commercial construction the main drag on the sector
• Firms retrench as they maintain a pessimistic outlook towards the next 12 months

According to PMI® survey data from S&P Global, France’s construction sector downturn continued into the third quarter of 2026. That said, the rate of decline in total building activity was the softest in five months. Of note was the pessimism expressed by firms through their year-ahead outlook, but also demonstrated by reductions to staffing levels, purchasing activity and subcontractor usage.

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.

Registering 41.5 in July, the headline index was at a five-month high and up from June’s 38.2. That said, the latest figure was indicative of a sharp decline in total construction activity across France.

Split out by project type, activity data revealed another broad-based contraction. Commercial construction was once again the key area of weakness, with the level of work falling at a steeper rate than seen in both the residential and civil engineering segments.

The volume of new orders received by construction businesses in France continued to decline rapidly in July. Customer hesitancy was reported as a factor, as well as a lack of competitiveness when it came to quotations. The decrease in demand was nonetheless the weakest since March.

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

French constructors were pessimistic towards the 12-month outlook for activity in July. Albeit less downbeat than in the four months prior, the degree of negativity signalled by the survey data was historically steep.

Surveyed companies stayed in retrenchment mode at the start of the third quarter. The quantity of construction materials purchased fell for a thirty-ninth successive month, while subcontractor usage was reduced further. Firms also lowered employment, in line with the trend of job losses seen since May 2024.

Although demand pressures across the sector were lacking French construction companies reported worsening delays from suppliers in July. In fact, the extent to which delivery times lengthened was the most substantial for more than three years.

July survey data indicated a cooling of cost pressures, marking the third successive month that this has been the case. Nevertheless, the rate of input price inflation was steep and well above those seen throughout 2025. Notably, subcontractors were a source of price pressure as their rates charged increased at the quickest pace since April. 

Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence, said, “France’s construction sector is bogged down in a deep downturn. The latest survey results provide little reason to be optimistic towards the second half of the year – new orders are declining, construction material purchases are shrinking and firms expect activity levels to continue decreasing over the next 12 months.

“Falling activity levels across the residential, commercial and civil engineering segments indicate a broadly challenging investment environment across the country. It’s hard to see where any impetus for growth will come from.”

For further details, click here.

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

Subscribe on LinkedIn