Construction activity rises at fastest pace since January 2006

Recovery in the Irish construction sector picked up pace in October, recording the fastest rate of growth in almost eight years, according to the Ulster Bank construction PMI.

The seasonally adjusted index, which tracks changes in total construction activity, rose to 59.4 in October from 55.7 in September showing a sharp monthly expansion of activity. Moreover, the rate of growth was the fastest since January 2006.

Growth of both activity and new business accelerated from September and firms raised their input buying sharply, although the rate of job creation remained marginal.

Ulster Bank chief economist Simon Barry said the results provide further evidence that a recovery dynamic is beginning to take hold in the Irish construction sector.

“Overall activity increased for the second consecutive month in October, with the pace of expansion reaching its fastest since January 2006. Accelerating increases were recorded in both housing and commercial activity with the rate of expansion in housing reaching levels last seen almost nine years ago.”