French construction sentiment continues to deteriorate

Sentiment among French construction companies deteriorated again in December following a negative November. The firms surveyed by l’Institut National de la Statistique et des Études Économiques (Insee) reported a stable but negative business climate.

Construction companies in both structural works and finishings had a pessimistic attitude towards their past and future activity. More firms than in November considered the evolution of their company and the market to be unpredictable. “The balance of opinion on the economic uncertainty being felt has kept on growing,” an Insee report obtained by Kallanish states.

Last month, contractors were slightly fewer in number compared to November to consider the level of their order books to be higher than normal. Given their staff size, they reported 8.2 months of work. Production capacity was stable on-month, while slightly fewer firms than the previous month reported slowing output because of supply difficulties.

21% of construction companies considered themselves unable to increase their production in case of additional orders due to a lack of personnel and supply difficulties.

However, in December, slightly more business managers than in November announced they will increase their prices in the upcoming three months, the report concludes.

Natalia Capra France