Construction sector faces seventh year of decline – report
THE construction industry faces its seventh year of decline, new figures show.
The Ulster Bank Construction Purchasing Managers’ index (PMI), which tracks the sector, stood at 42 in May, almost identical to its 41.9 reading the previous month –any figure above 50 indicates expansion the sector.
Simon Barry, Chief Economist Republic of Ireland at Ulster Bank said:“The Irish construction sector remains very much in contraction mode.”
“Survey respondents continue to cite a lack of demand and strong competition as key headwinds and the result was a seventeenth consecutive fall in new orders – a trend which continues to exert a downward pressure on staffing levels,” he said.
Despite the poor results, however, a measure of positivity was recorded among survey participants, who reported that they expect activity to rise in coming months as the economy slowly improves.