French construction deteriorates

After slowing heavily in March, activity by companies in the French construction sector again deteriorated significantly month-on-month in April, according to a report from l’Institut National de la Statistique et des Études Économiques (Insee) monitored by Kallanish.

In April almost all business managers of building firms with more than 10 employees were pessimistic about the general outlook of the sector although they were rather confident in January. Many more companies than in the previous month have anticipated a decrease in their activity for the next three months. Also, significantly more business managers than in March have indicated a decrease in their activities over the last three months, the report says. 

In April, more building companies than in January have reported a lengthening of payment periods from their clients. “The corresponding balance has sharply increased and has reached his highest level since April 2015… That goes hand in hand with a degradation in their cash-flow position”, the report concludes.