Construction sector activity still weak

A gauge of Ireland's building industry fell at the fastest pace in seventh months in December, according to the latest Ulster…

A gauge of Ireland's building industry fell at the fastest pace in seventh months in December, according to the latest Ulster Bank Construction Purchasing Manager's Index.

The index, which tracks activitity in the construction sector, declined to 33.1 last month from 34.2 in November. A reading below 50 indicates contraction.

This represented the thirty-first consecutive monthly reduction in activity, and the steepest decline since May.

The measure of residential construction fell to 32.6 from 35.1, while commercial building slid to 32.3 from 33.2.

READ MORE

The index for civil engineering dropped to 33.8 from 33.9.

"While a pick up in international economic conditions is beginning to benefit the Irish manufacturing and services sectors, the same is clearly not true for the domestically focused construction industry," Simon Barry, chief economist at Ulster Bank, said in the report.

"The index continues to point to a sector that is contracting deeply," he added.

New business also declined at a faster pace during December, with the considerable rate of contraction the sharpest since April.

In addition, employment fell at its fastest rate in seven months.