The HCOB Construction PMI in France fell further to 38.4 in March 2026 from 43.9 in February, pointing to the steepest contraction in the construction sector in 18 months. All three of the broad construction activity types, including home building, commercial projects, and civil engineering, experienced sharper reductions. New projects declined further, extending the current period of falling new business to four years. Firms responded by sharply cutting purchasing volumes and scaling back employment. Suppliers' delivery times lengthened, and to a slightly greater extent than in February. On the price front, input cost inflation surged, approaching a three-year high, amid reports of higher prices for fuel, chemicals and plastics. This reflected the immediate impact of the energy price shock triggered by the Middle East conflict. Subcontractors raised their fees to the greatest extent since October 2023. Business confidence fell sharply, wiping out much of February’s improvement.