French construction sector outlook improves

Sentiment among French construction companies has improved in October. However, the firms surveyed say it is more difficult than in September to predict the future evolution of the market but they remain optimistic about their activity for the next three months, Kallanish learns from a l’Institut National de la Statistique et des Études Économiques (Insee) report.

In October, production capacity increased on-month but obstacles to production persist, caused by global supply disruptions. The same number of construction firms as in September reported slowing output this month and say they are facing supply difficulties.

Despite an improved supply situation, “the share of companies at the limit of their production capacity, that is to say, that they could not produce more with their current means if they received more orders, has risen again: 54% of business managers have reported being in this situation,” the report states.

This month, more companies than in September say they will increase their prices over the next three months and more firms also consider that the level of their order books is higher than average.

Despite this positive picture, the French rebar market is going through a weak patch, with prices and sales volumes reducing. Uncertainty is causing buyers to purchase small quantities and adopt a wait-and-see attitude (see Kallanish passim).

Natalia Capra France