Construction slump enters fifth year

The latest Ulster Bank Construction Purchasing Managers' Index shows activity levels have now fallen in every month since June 2007, meaning the construction slump has now entered its fifth year.

Activity in the country’s beleaguered building sector deteriorated again last month as the housing slump continued.

The latest Ulster Bank Construction Purchasing Managers' Index shows activity levels have now fallen in every month since June 2007, meaning the construction slump has now entered its fifth year.

The index for last month fell to 40.5 in June from 41.1 the previous month, representing the lowest recorded figure since May 2010.

Any reading below 50 means activity fell.

The index showed orders for new business fell at the fastest pace in June since last Autumn. Employment levels across the sector also dropped but at a more moderate pace.

"There were no signs of any imminent improvement in the Irish construction sector according to the latest reading of the Ulster Bank Construction PMI," said Ulster Bank chief economist Simon Barry.

"In fact, the rate of deterioration in activity accelerated for the fourth month running in June as the PMI fell to its lowest level in over a year."

"As we look to the second half of the year, near-term prospects for the sector as a whole don't look bright, as incoming orders for new business in June fell at their fastest pace since late last year. Employment, too, continues to fall away, though the pace of decline in June was the slowest in almost four years," he added.

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