Construction trade activity has declined for the 13th consecutive quarter

The slowdown continues for small construction businesses. In the second quarter of 2026, their activity declined by 1,5% year-on-year, according to the Confederation of Craft and Small Construction Businesses (CAPEB).

This contraction, identical to that recorded in the previous quarter, brings the number of consecutive quarters of decline to thirteen. The observed stabilization is therefore insufficient to confirm the recovery that the industry was still hoping for at the beginning of the year.

"We cannot talk about improvement because we can clearly see that the decline is persistent and that we are now at 13 consecutive quarters of decline in overall activity," CAPEB stressed during a press conference in Paris.

Approximately 12.000 jobs lost in small businesses

The persistent weakness in activity continues to weigh on employment. Over the past year, approximately 12.000 jobs have disappeared in construction companies with fewer than 10 employees.

This erosion of staff weakens a network composed mainly of small structures, whose activity depends directly on orders from individuals, real estate transactions and public schemes supporting renovation.

Some positive signs, but still insufficient.

CAPEB observes a slight improvement in the new construction market. It also notes a 5,2% increase in sales of existing homes over twelve months.

For the organization, this trend could be an early indicator of demand for maintenance and renovation work, as property acquisitions are frequently followed by renovations. However, these signals do not yet allow for the expectation of a full-scale recovery.

“Our current environment does not lead us to believe that we could have a positive business activity in 2026.” CAPEB believes this is the conclusion.

CAPEB is calling for more phased renovations

The professional organization points in particular to the changes in MaPrimeRénov', with a reduction in the scope of aid dedicated to work carried out by gesture, while the financing of large-scale renovations would be maintained.

CAPEB, on the other hand, advocates a gradual energy renovation process, comprised of coherent works carried out in the correct order. According to them, this approach should allow households to adapt their homes to their financial means and improve their comfort both in winter and during periods of intense heat.

"We would like to see MaPrimeRénov' reallocated to more single-step projects," declared Jean-Christophe Repon, president of CAPEB, which advocates for "phased" energy renovations in order to "help the French live better in their homes during the summer".

Costs and weather-related risks are putting a strain on construction sites.

In addition to the uncertainties surrounding renovation grants, the CAPEB (Confederation of Craftspeople and Small Businesses in the Building Sector) reports that rising costs are caused by the conflict in the Middle East. Increased fuel and raw material prices are making travel more expensive for tradespeople and increasing the cost of supplies needed for construction sites.

The organization reports price increases of between 10 and 25% at some suppliers. These increases are difficult for small businesses to absorb, as they must choose between preserving their profit margins and passing the costs on to their customers.

Weather conditions also disrupt work organization. A survey conducted by CAPEB between May and June 2026 among more than 2.200 craft businesses shows that 58% of respondents experienced construction delays due to adverse weather conditions.

"This tunnel of declining activity has never been so long and, with a presidential election coming up, there is no real light at the end of the tunnel to plan for," warned Jean-Christophe Repon.