France Construction PMIJanuary 2023 Data - 2013-2022 Historical - February Forecast

The S&P Global France Construction PMI rose slightly to 41 in December 2022 from 40.7 in the previous month. Still, the latest reading pointed to the seventh straight monthly decline in the country's construction sector, with all three types of construction work monitored by the survey recording marked decreases. Companies blamed weak demand being the main drag for activity, with the volume of incoming new orders falling to the quickest extent in almost two years. Hence, firms cut their purchasing activity during December, while employment remained unchanged after five consecutive monthly declines. On the price front, cost pressures stayed elevated. Finally, French construction companies remain pessimist about this year's outlook, with more firms expecting activity to fall.

The S&P Global France Construction PMI fell further to 40.7 in November of 2022 from 44.3 in the prior month. The latest reading pointed to the sixth straight month of contraction in the country's construction sector and at the sharpest pace since January of 2021. All three types of construction work monitored by the survey recorded quicker declines, especially residential building and civil engineering projects. The downturn was triggered by a further decrease in the volume of new work received, amid falling demand, particularly from clients in the public sector. Soaring costs and heightened economic uncertainty continued to weigh on investment appetite. French constructors subsequently cut their staffing levels at the sharpest pace in nearly two years and reduced their purchases of raw materials. On the price front, cost pressures stayed elevated. Lastly, business sentiment was pushed further into pessimistic territory, dropping to its lowest level in just over two years.

The S&P Global France Construction PMI fell to 44.3 in October 2022 from 49.1 in the prior month. The latest reading pointed to the fifth straight month of contraction in the country's construction sector and at the steepest pace since February of 2021. All three monitored subsectors contracted during October, led by the residential segment, with activity levels falling at the sharpest pace since the initial COVID-19 lockdown in early 2020 amid rising borrowing costs. New orders declined sharply, amid weak demand conditions. As a result, purchasing activity and employment were both cut back as companies look to protect cashflow. On the price front, inflationary pressures remained considerable, with the rate of input price inflation accelerating for the third month running to the steepest since June, amid high fuel, energy and raw material costs. Looking ahead, French constructors remained pessimistic towards the coming year as high inflation was expected to impact workloads.