French Construction Faces Sustained Slump

The HCOB Construction PMI in France came in at 43.5 in January 2026, broadly unchanged from readings in both December and November. The data signaled another sharp contraction in construction sector activity, prolonging the severe downturn that began in June 2022. Weak conditions persisted across all monitored segments, namely residential, commercial, and civil engineering, amid persistent subdued demand. New order intakes recorded a marked decline, although the pace eased from December. This prompted French constructors to scale back material purchases in January, but the reduction was the softest since May 2024. Subcontractor usage declined at a markedly faster pace than in December. Supplier delivery times lengthened for the eighth consecutive month, though the deterioration in vendor performance was moderate and the least pronounced since July. Employment levels continued to decline, but the pace of job losses eased for a second consecutive month and was marginal overall.