IRISH CONSTRUCTION activity fell again in October, although new business stabilised during the month, according to the latest purchasing managers survey from Ulster Bank.
New orders remained insufficient to justify growth of employment or purchasing activity, which both fell again.
Meanwhile, input costs rose amid higher commodity prices, and low stock levels at suppliers reportedly contributed to lengthening delivery times. Confidence among firms was the weakest in nine months.
The Ulster Bank Construction PMI – a seasonally adjusted index designed to track changes in construction activity – rose to 45.2 in October, from 40.1 in September. A figure below 50 indicates a decline in activity.
“One encouraging aspect of the latest PMI data was the new orders index, which ended a 13-month sequence of declines,” said John Fahey, Ulster Bank economist. “However, despite the signs of stabilisation in new business opportunities, the industry remains in a job shedding mode.”
In Northern Ireland, companies reduced their workforce for the 44th month in a row in response to weak market demand. Richard Ramsey, chief economist with Ulster Bank, said the PMI survey highlights three key trends at a headline level.
“Private sector output is still falling; the rate of inflation is accelerating; and the level of job losses has stabilised,” he said.
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