CONDITIONS IN the construction sector worsened at a quicker rate in November than they did in October, according to figures released yesterday.
The latest numbers from the Ulster Bank purchasing managers’ index show rates of decline in activity, new orders and employment all accelerated, while firms were pessimistic regarding the 12-month outlook for activity.
The seasonally adjusted index, designed to measure the overall performance of the construction economy, dropped slightly to 34.2 in November from 34.5 in the preceding month to signal a sharper contraction of activity.
According to respondents, falling new business was the main cause of the latest reduction.
“While trends in other areas of the economy are beginning to move in the right direction, the latest reading of the index highlights that the construction sector remains a clear laggard,” said Simon Barry, chief economist at Ulster Bank. “The headline activity index edged lower last month, and has essentially been unchanged at very low levels since September.”
Mr Barry said the survey continues to point to layoffs. Of the three construction categories covered, the steepest decline in activity was registered in the commercial sector. Although the fall in civil engineering activity was slower than in the previous month, it was still considerable. Activity on housing projects also decreased substantially, despite posting the weakest reduction of the three monitored sectors.
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