Construction in France: What recovery?

10/13/2015 - Report
ic_blogtagFranceConstructionBusiness ClimateIndustryRecessionSector Risk
After seven years of recession, output in France's construction industry is expected to contract a further -1.6% in 2015. The sector seems to have hit bottom however and there are signs that it will gradually start recovering in 2016, with output rising +0.7% overall.

Activity in the Civil engineering segment is expected to continue to decline in 2016 (by -0.5%) and will threaten the survival of many construction companies, which depend on short-term funding sources for 60% of their financing.

It will take some time before we see a drop-off in business insolvencies in the sector (a total of 30,000 are expected in 2015 and 2016) or an improvement in the employee situation (net job destruction of 79,000 is forecast over these two years).

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Construction in France: What recovery? - Report