Public works order books reach decade low

A business climate survey by Insee, released on October 23, shows a significant decline in public works activity, with order books reaching their lowest level in over ten years. The survey highlights a worsening trend in the sector, with a growing number of companies reporting insufficient demand for their services.

More companies report low demand

According to the survey, 64% of the companies surveyed indicated they are facing insufficient demand, a sharp increase from 56% in July and 37% in January. The opinion balance on past activity dropped to −45, compared to −37 in July, showing a continued decline in business activity and order books.

Order book perceptions worsen

Entrepreneurs' views on their order books have deteriorated further, with the opinion balance falling to −53 in October, down from −49 in July. For companies that distinguish between public and private clients, the decline in public orders is especially severe, with the balance reaching −64, compared to −60 in July.

Private demand also weakens

Private demand has also weakened, with the balance dropping from −40 to −51. These indicators reflect companies' perceptions of the volume of orders they expect rather than actual contract values. Insee notes that such low levels of order book balances have not been recorded in over a decade.

Labor issues less pressing

While 64% of companies report insufficient demand, only 12% mention difficulties related to a lack of personnel, down from 20% in July. This suggests that the main challenge for the sector is the availability of projects rather than staffing issues, though skill shortages still vary by profession and region.

Contract values decline

The National Federation of Public Works (FNTP) reported that from January to August 2026, concluded contracts fell by 26.6% in constant euros compared to the same period in the previous year. Work volume decreased by 8%, and hours worked by permanent employees dropped by 4.5% over the same period.

Insee and FNTP data align

While Insee's survey captures entrepreneurs' opinions up to October 20, the FNTP data reflects actual activity and order changes over the first eight months of 2026. Despite measuring different aspects, both sets of data show a consistent decline in demand for public works.

Uncertainty and employment outlook

The economic uncertainty index reached 53 in October, the highest since 2021. Employment prospects improved slightly, with the balance moving from −19 to −17, but remain well below the long-term average. Companies are now focused on whether orders—especially public ones—will renew in the coming months amid tight budgets.

Next survey to track trends

Insee plans its next quarterly survey on public works for January 26, 2027. This will help determine whether the decline in order books continues or if demand begins to stabilize.