2026.03.1001:52:43UTC+00Irish Construction Activity Returns to Growth

The AIB Ireland Construction PMI rose to 52.1 in February 2026 from 48.6 in January, signalling the first expansion in the sector since April 2025 amid strengthening demand. New orders increased for the third consecutive month, registering the fastest growth since February 2022. The upturn was led by commercial construction, while housing activity returned to growth after ten months of contraction, though only modestly. In contrast, civil engineering activity continued to fall, but at the slowest rate seen in the current downturn.

As workloads increased, firms expanded their staffing levels for the fourth month in a row, with employment rising at the sharpest pace since January 2025. Purchasing activity also saw its strongest increase in nearly four years. Input costs continued to rise steeply, largely driven by higher metals prices, although the rate of inflation eased slightly compared with January. Suppliers’ delivery times lengthened, reflecting courier shortages and congestion at Dublin Port. Business sentiment remained firmly positive, underpinned by expectations of further growth in new orders.