Monday 19 March 2018

Construction sector growth slows down

Firms continue to report solid rates of expansion. Stock photo
Firms continue to report solid rates of expansion. Stock photo
Colm Kelpie

Colm Kelpie

The pace of growth in the construction industry here has slowed to its weakest level since January, a survey shows.

The growth in new orders last month quickened, helping to support a further sharp rise in activity and a stronger rate of job creation, according to the latest purchasing managers' index (PMI) for the sector, produced by Ulster Bank.

Simon Barry, chief economist with Ulster Bank in the Republic, said that although the rate of growth weakened, it remained marked overall as activity increased for the 47th successive month.

"The latest results of the Ulster Bank Construction PMI survey show that Irish construction firms continue to report very solid rates of expansion," Mr Barry said.

"The headline PMI index did ease for the second month running - and to the lowest level since January - consistent with some moderation in the rate of activity growth in July."

The seasonally adjusted index, designed to track changes in total construction activity, dropped to 56.6 in July from 58.2 in June, signalling the weakest monthly rise in construction activity since January.

Mr Barry said the PMI remains firmly in expansion territory and close to the average reading recorded in the pre-crisis 2003-2007 period of rapid growth.

Irish Independent

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