Rate of growth in construction industry eases
According to the latest Ulster Bank Construction Purchasing Managers’ Index, inflation in the construction sector has eased to its lowest in nearly two years, according to a study of the sector. Activity in the sector continued to rise strongly in March, although it did ease back on an historic high in February.
The industry posted a figure of 62.3 last month – well above the 50 mark that separates growth from contraction – but below the all time high of 68.8 seen in February.
Construction activity has now increased in each of the past 31 months, with a rising number of enquiries reported by builders during the month.
Respondents to the survey reported a rising number of inquiries as well as increased staffing numbers and purchasing activity.
“Over 60% of firms anticipate further improvement over the next 12 months, partly reflecting positive expectations regarding the outlook for the wider Irish economy,” noted Ulster Bank’s chief economist Simon Barry.
MR Barry said that some pull-back had been expected from February’s all time survey high.
“At 62.3, the headline PMI index continues to point to very strong expansion. It’s a similar story at the level of each of the major sub-sectors, with growth easing but remaining robust in the commercial, housing and civil engineering areas,” he added.
Six in 10 firms expect further improvement over the next year.
