Construction in Republic continues to bounce back
Building, orders and employment all rose rapidly last month, says Ulster Bank index
Construction activity in the Republic has now risen almost continuously since September 2013
The construction sector in the Republic continues to bounce back strongly from the crash, with activity, new orders and employment all increasing at faster rates in November, according to the latest Ulster Bank Construction Purchasing Managers’ Index (PMI).
Although the pace of growth in the November monthly index slowed to 59.8, dropping from the seven-month high of 62.3 in October, it remained well above the 50 line that separates growth from contraction.
Anecdotal evidence suggested that signs of improving economic conditions had helped lead to growth of activity, the report said. Construction activity has now risen almost continuously since September 2013.
For the first time in 11 months the best-performing sector in November was housing, the report revealed.
The number of new residential units being built is expected to be less than half of the 25,000 required to meet demand.
Ulster Bank’s report found commercial activity continued to rise sharply despite the rate of growth easing from the previous month, while the sub-index for civil engineering activity decreased following no change in October.
Ulster Bank chief economist Simon Barry said Irish construction activity continued to grow at a very solid pace. “This is further welcome evidence of sustained, solid expansion in an area where strong performance is badly needed given the housing supply shortfall.”