The number of new homes under construction in France fell by 19.6% last year, compared to 2011, data released by the housing ministry shows.

The number of housing permits issued for future home construction also slipped by 7.7% to 429,851 units.

The trend deteriorated sharply in the fourth quarter, when the number of homes under construction fell by 30% and permits dropped by 25%, whereas they had not fallen by more than 2% in any of the preceding three quarters.

On a sliding 12-month scale, the fall in housing starts to the end of December was the biggest since September 2009.

The French economy in general ended 2012 on a weak note, and in the construction sector, loans for French housing plunged by 26% compared to 2011, despite ultra-low interest rates.

The French government has forecast economic growth of just 0.8% this year, but that figure might be revised lower, while a new International Monetary Fund estimate puts French growth at 0.3%.