6th July 2026

Key Findings:

Fastest decrease in commercial construction activity since May 2020
Demand for new building projects continues to deteriorate sharply
Firms more pessimistic towards the outlook, even as cost pressures ease

PMI® survey data from S&P Global continued to signal depressed business conditions in France’s construction sector. June saw a further sharp drop in demand for new building projects, leading activity levels to shrink rapidly once again. Firms subsequently stayed in retrenchment mode, cutting both employment and purchasing volumes. Although cost pressures eased, they were still far stronger than seen immediately prior to the outbreak of war in the Middle East.

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.

Falling to 38.2 in June, from 39.6 in May, the headline index pointed to a sharp and accelerated pace of contraction in total construction sector activity levels.

Data broken down by the three main types of construction activity monitored by the survey revealed that the downturn in June was broad-based. This was in line with the trend since last September. The commercial sub-sector was by far the worst-performing, with activity levels shrinking at the steepest pace since May 2020. Housing construction meanwhile decreased sharply and to a slightly faster extent than seen previously. Civil engineering posted a fall that was considerable, albeit the softest since January.

June survey data signalled a further marked decline in demand for construction projects across France. This marked more than four years of continuous decline in new business wins. Competition and generally low client interest levels were noted by respondents.

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The sustained decline in demand, coupled with steeply falling activity levels, spurred constructors to make further cutbacks to purchasing at the end of the second quarter. Although the reduction was the softest in three months, it was still sharp overall. Employment was also an area where French constructors made cost-savings. June saw payroll numbers fall moderately and for a twenty-sixth successive month.

Although there was clear evidence of a subdued demand-side in France’s construction sector, June survey data pointed to stretched capacity at suppliers. This was signalled by a further lengthening of delivery times.

As part of the survey, data is also collected on sub-contractor usage, availability, rates charged and their work quality. June indicated the fastest fall in usage since September 2024, while availability improved to the greatest degree in the year-todate. Sub-contractor rates rose solidly and at a faster pace, whereas the quality of their work was perceived to have worsened.

As for constructor’s operating costs, June signalled a further substantial monthly rise. The rate of inflation did cool, however, to a three-month low.

Lastly, constructors in France turned more pessimistic towards the 12-month outlook for activity. Downbeat projections were linked to competitive pressures and challenges relating to the wider economic environment.

Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence, said, “The story for France’s construction sector remains a bleak one, with June PMI data suggesting little chance of an immediate turnaround. Demand for new building projects is frail and the response from firms has been to retrench. Material purchasing volumes fell sharply, employment was cut and sub-contractor usage plunged.

“Even when we break down activity further, we’re met with more reason to be pessimistic about sector conditions. The sharpest fall in commercial building activity since May 2020 was coupled with marked reductions in residential and civil engineering project work.

“Survey data and accompanying anecdotal evidence offer little encouragement about the outlook. Constructor’s expectations for activity turned more pessimistic in June, with competitive pressures and a challenging economic environment more broadly dampening sentiment.”

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