2023.04.1706:48:00UTC+00Irish Construction Activity Signals Slight Contraction In March

Ireland's construction activity continued to deteriorate in March, though marginally, amid sustained and stronger expansion in new orders on the back of cooling inflationary pressures, survey results from S&P Global showed Monday.

The headline BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index dropped to 49.5 in March from 49.8 in February.

The reading has remained below the neutral 50.0 mark for the sixth successive month, suggesting contraction in the construction sector.

Even though the rate of reduction accelerated a bit from the previous month, it was only a fractional increase.

Among the three broad categories, the sharpest fall was seen in the civil engineering sector, and the downturn in housing activity was also solid in March. Meanwhile, commercial activity expanded for the second straight month.

On a more positive note, growth in new orders, employment, and input buying were all sustained, and there were some tentative signs of cooling in terms of inflationary pressures, which fell to the lowest level in twenty-six months, the survey said.

Over the next 12 months, firms are optimistic about business activity due to expectations of a sustained improvement in client demand.