French construction industry continues to slow

Sentiment among French construction companies has again deteriorated significantly in June following a difficult May. The firms surveyed reported deteriorating opinion on their past and future activity.

More companies than in May consider the market unpredictable due to the current uncertainty, Kallanish learns from a l’Institut National de la Statistique et des Études Économiques (Insee) report.

In June, fewer building contractors than in May considered their order books to be higher than normal and reported 8.5 months of work. Production capacity was stable in June and the same number of construction firms as in May reported slowing output because of supply difficulties. About 27% of companies, slightly more than last month, reported being at the limit of their production capacity, meaning they could not produce more with their current means if they were to receive more orders.

“In June 2023, significantly fewer business managers than in the previous month have announced that they will increase their prices in the upcoming three months,” the report states.

The French rebar market is stagnant with producers resorting to production cuts to address the current overcapacity and an agonisingly sluggish private construction sector. Domestic rebar prices have lowered considerably over recent months to €580/tonne ($633) base ex-works on average, sources say.

Natalia Capra France