The HCOB Construction PMI in France fell to 41.6 in June 2025 from 43.1 in the previous month, marking the steepest contraction since February and extending the sector’s downturn into its third consecutive year. The decline was driven by sharp reductions in both housing and commercial construction, with housing activity falling at the fastest pace since September 2024. In contrast, civil engineering saw a modest growth, ending a four-month decline.
The drop in new orders accelerated, reaching its fastest rate in 2025, as firms cited intense competition and weak demand. As a result, construction companies implemented further cuts to employment and purchasing. Despite subdued demand, supplier delivery times lengthened, and subcontractor rates rose at their fastest pace since October 2023. Lastly, confidence among constructors weakened for the third month in a row, with more than 28% expecting activity to decline over the next year—though a minority of firms still anticipated improvement.
