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THE LEVEL OF house construction remains at a very low level but new evidence suggests that the sectors is expected to grow in the near future.
The Ulster Bank Construction Purchasing Managers’ Index for July shows that the number of new orders is now at the highest level since November 2004.
The index measures growth as any reading above 50 and recorded the level of construction activity at 62.6 in July, up from 59.9 in June. This is the biggest monthly rise since April.
The July bump also now means that activity has risen in 11 consecutive months according to Ulster Bank’s chief economist Simon Barry:
Overall activity increased sharply in July, with the rate of growth quickening to its fastest in three months. The July results marked the eleventh consecutive month of expansion among Irish construction firms – an important indication that a sustained recovery is taking hold.
In particular, the rate of expansion in activity on residential projects was the sharpest in the history of the survey which began in June 2000.
The growth in construction activity growth has led to better employment prospects in the the sector and an increase in the charges for sub-contractors according to Ulster Bank..
Barry also argues that we will soon start to see the effect these increases in demand have on the construction sector.
“The rate of growth of new orders picked up markedly to the strongest since November 2004, thus providing a solid basis for expecting that overall activity levels should continue to expand solidly in the months ahead.”
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As long as the financial institutions are stringent and dilligent in the way they lend money this is great news for the economy . This will create massive employment across the board .
Break out the jumbo breakfast rolls lads… The builders arses are back in fashion…!
As someone who worked in the construction industry for years, and always wore a belt. Builders bums are a sight that you can never get use to
A load of fairy tale figures, but no hard facts from a bust foreign bank trying it’s best to sell up and leave the country asap.
most houses are being bought with cash so no morgage needed. I do a lot of work for people who have retired and sold there large homes and are using the money for investment properties. also most have taken there life savings out because there making nothing on intrest and the dirt has rocketed from 3% to 30% in the last budget. Or there borrowing on there assets for huge morgages on multiple property’s. also rents are shooting through the roof because of greed and no kind of control.
so its not houses being bought as family homes but for investment property that has demand high at the moment.
and when intrest rates go up we will soon see how property prices are affected. and the ECB dont care about the irish housing market. they will do what they think is needed for the greater good of Europe.
The ECB will remain dictated to by the German economy’s nees not the European economic need.
Have they ever taken the greater good of Europe in to consideration?
Well Ryan. They did give us a few ‘tens of billions’….remember?
Most houses bought for cash? I doubt that.
@Declan please learn the difference between ‘there’ and ‘their’
DIRT has gone from 3% to 30% in the last budget? Now I’m all for knocking the government but that is highly incorrect!
And there and they’re
100% mortgages are widely available again….
Don’t think so Glen…main banks will go as far as 90% and even at that you’d need to be the seventh son of a seventh son born during a month with an ‘r’ in it.
Tony. See your friendly mortgage broker.
These are the chaps who known the right fibs.
No they are not.
20% deposits are more common than 100% mortgages.
No one can say that mortgages are being given out freely
Nobody did, Ryan.
Its easy to get a 100% mortgage now – but, perhaps, not as easy as before. Lenders are, at least, reading the application forms.
Another day, another native ad from the Journal’s owner DAFT media.
#vested interest
The construction Industry has been vitiated largely to the indiference of media commentators. The vast numbers who emigrated from Ireland during recession were too often regarded as “having made ther money” during the boom. True only of those at the top of the industry . Breakfast roll man was just earning a living no more. His absence regarded at best here as some kind of accaeptable collateral damage. His absense will be truly missed soon enough as recesion lifts.
will Paddy ever learn ? Doubtful. Buy buy buy buy! before it’s too late.
The country would be very fortunate if it could get the 10′s of thousands of unfinished homes in Dublin and around the finished and sold off during this false upward blip.
A blip that is basically fueled by nervous large savers buying up people’s homes (in certain postcodes) in the fear Cyprus style cash grab, nothing more.
typo sorry
“in Dublin and around the country”
Before anyone even considers building anymore new overpriced shoeboxes because of this farcical “housing crisis” fabricated by the property media.
Can we please learn from our mistakes in the past and not throw up poorly planned, shoddily constructed housing estates with no facilities.
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