SHARP GROWTH CONTINUES – PMI RESULTS

The end of the second quarter of the year saw further sharp growth of construction activity in Ireland, reflecting another month of increasing new business. Rising workloads encouraged companies to step up hiring. Meanwhile, the rate of input cost inflation eased to a nine-month low.

The Ulster Bank Construction Purchasing Managers’ Index®(PMI®) – a seasonally adjusted index designed to track changes in total construction activity – posted 58.4 in June, thereby signalling another sharp monthly increase in construction activity in Ireland. This was despite the index dipping from May’s 61.8 to a three-month low. Total activity has now risen in each of the past 58 months.

Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that: “Irish construction firms continued to experience very solid, though slightly slower, growth in June according to the latest results of the Ulster Bank Construction PMI survey. The headline PMI eased back from what was an extremely elevated reading in May to stand at 58.4 in June but this is still very much a level which signals ongoing rapid gains in activity.

Read more in the next issue of Irish Construction Industry magazine.