Irish building sector contracted at fastest pace since May
Published 13/12/2010 | 09:03
Ireland’s building industry contracted at the fastest pace since May as companies saw a decline in house-building and civil engineering activity.
The Ulster Bank Construction PMI index fell to 41.7 in November from 42.3 in October, Ulster Bank said in a monthly report published today. A reading below 50 indicates contraction.
The index has fallen for three straight months, bringing it to its lowest level since May, Ulster Bank said.
New business at construction companies fell again in November, having decreased in all but two of the past forty-four months, the report said.
“Declining levels of new incoming business remains a critical issue facing the sector, as tentative signs of stabilisation in the summer have given way to renewed weakness in new orders in the past three months,” Simon Barry, chief economist at Ulster Bank, said in the statement.
The index reading for housing activity fell to 44.6 in November from 49.3 in October, according to the report.
The civil engineering activity index declined to 32.1 from 33.8 over the same period. The commercial activity index increased to 43.4 from 39.4.