French construction sector outlook deteriorates

Sentiment among French construction companies deteriorated in January. The firms surveyed were less optimistic than in December regarding their expected and past activity, Kallanish learns from a l’Institut National de la Statistique et des Études Économiques (Insee) report.

However, fewer companies than in December “considered the evolution of their company situation to be unpredictable”, the report shows, adding that compared to the fourth quarter last year, the general outlook for activity remains stable.

In January, fewer contractors than in the previous month considered their order book level to be higher than average. The current order levels provide for 8.9 months of work.

This month, production capacity remains stable and the tension exerted on production by global supply disruptions is slightly easing. A higher number of construction firms than last month reported slowing output in January due to workforce shortages, but fewer companies reported supply difficulties.

The share of companies at the limit of their production capacity also dropped in January: 29% of business managers reported being in this situation. 12% meanwhile reported supply difficulties, the report states. This month, more companies than in December say they will increase their prices over the next three months.

Natalia Capra France