House building rises at its fastest rate since 2000

Commercial construction also rose at a sharp pace although growth moderated on the previous month

The fastest rise in house building in its history drove a further month of growth in Ulster Bank’s Construction Purchasing Managers’ Index (PMI) in September.

The fastest rise in house building in its history drove a further month of growth in Ulster Bank’s Construction Purchasing Managers’ Index (PMI) in September.

 

The fastest rise in house building in its history drove a further month of growth in Ulster Bank’s Construction Purchasing Managers’ Index (PMI) in September.

The index hit 61.5 in September, up from 61.4 in August. Any result above the benchmark number of 50 indicates growth on the previous month while any outturn below that indicates the industry contracted.

Ulster said the increase was aided by house building which grew at its fastest pace since the index was introduced in June 2000. The housing index alone reached 68.4 in September, up from 63.7 the previous month.

Commercial construction also rose at a sharp pace, although growth was at a slightly slower rate than in August. The commercial index read 62.7 in September, below the previous month’s figure of 63.2

Civil engineering, that is large projects such as road building, which are tied to Government spending, showed a relatively sharp decline. The sector returned a result of 45.1 in September, from 48.3 in August.

Ulster Bank chief economist for the Republic of Ireland, Simon Barry, said the recovery in the construction industry continued to gain strength during September, which he said was another month of rapid expansion. “Total activity has now recorded increases in each of the past 13 months,” he said.