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Dublin: 12 °C Thursday 23 October, 2014

Construction activity remains “robust” in tenth month of growth

The rate has slowed slightly in the past couple of months but remains strong according to an index by Ulster Bank.

Construction Activity

Source: Ulster Bank Construction PMI Report

ACTIVITY IN THE construction sector has increased for the tenth month in a row, a new survey shows.

The Ulster Bank Construction Purchasing Managers’ Index (PMI) recorded a reading of 59.9 last month, continuing a slow downward trend in the rate of growth after a rise to 63.5 in April.

Suppliers are reportedly struggling to keep up with the successive increases in demand as delivery times “lengthened sharply” this month.

The residential sector performed the best of the three analysed.

A rise in the level of job creation was also recorded for the tenth month in a row, but at its slowest pace since January. Input buying rose sharply.

This month’s index readings have been described as “robust” by the bank’s chief economist Simon Barry.

“The headline PMI eased back a touch last month but still remains at a very elevated level, consistent with ongoing solid improvement in the sector, albeit from the very depressed levels reached in the downturn,” he said.

The June survey affirmed that housing and commercial activity remain areas of particular strength as each sub-sector registered further rapid rises in activity.

Barry added at the current outlook is “favourable”, noting the “continued buoyancy of new orders”.

Last week, the Government announced that new planning laws are in the works to achieve a ‘faster recovery and higher standards’.

It will also aim to enable local authorities to incentivise the use and development of vacant sites.

Read: Why are construction start-ups outpacing other sectors? >

More: These are the six areas Enda and Joan want to prioritise from now until 2016 >

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