Ireland Construction Growth Slows In August

Ireland Construction Growth Slows In August

Ireland’s construction activity increased in August, albeit at a softer pace, survey results from IHS Markit showed on Monday.

The Ulster Bank construction Purchasing Managers’ Index fell to 57.5 in August from 62.8 in July. Any reading above 50 indicates expansion in the sector.

Among the three categories, housing and commercial activity increased in August, albeit at a softer pace. Meanwhile, civil engineering activity contracted.

“The May to July period was the second strongest three-month period for overall activity in the survey’s twenty-one-year history, and while the August results were not quite as exceptional, they do nonetheless clearly point to a sector that is enjoying strong growth as it continues to benefit from the re-opening of the economy which has been facilitated by the easing of public health restrictions,” Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, said.

New orders increased for the fifth straight month in August and staffing level continued to rise.

Purchasing activity increased in August, despite easing to a four-month low. Suppliers’ delivery time lengthened.

Input cost increased sharply in August and the rate of inflation eased from July’s record high.

Firms remained confident that business activity rise for the next 12 months.