| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Property Last Updated: Dec 12, 2011 - 5:43 AM

Irish construction activity continues to fall but at weakest pace since February
By Finfacts Team
Dec 12, 2011 - 5:39 AM

Email this article
 Printer friendly page
Source: Markit

Activity at Irish construction companies continued to fall in November, although the rate of decline slowed. New business declined marginally as clients remained cautious regarding economic conditions. Meanwhile, firms reduced employment again, and at a substantial pace.

The Ulster Bank Construction Purchasing Managers’ Index (PMI)  --  a seasonally adjusted index designed to track changes in total construction activity - -  increased for the second month running to 47.7 in November, from 45.2 in October. The reading represented the weakest fall in activity in the sector since February, but extended the current sequence of contraction to four-and-a-half years.

Commenting on the survey, Simon Barry, chief economist Republic of Ireland at Ulster Bank, noted that: “The November results of the Ulster Bank PMI survey offered some slight encouragement in terms of the latest trends in Irish construction. We noted last month that the New Orders index managed to exceed the key expansion-contraction threshold level of 50 for the first time in 13 months.

It did edge fractionally lower in November, but at 49.8 is just fractionally below the breakeven level and the trend in this index is tentatively suggesting that the multi-year slump in new business may be entering its final phase. It is important not to overplay this point, however, as even the deepest and most protracted downturns eventually come to an end, so the indication of a less negative trend in new business in Irish construction is really a function of the severity of the declines seen over the past four and a half years.

“Moreover, whatever the tentative signs of stabilisation in new orders, the November survey results show further declines in actual activity levels across the sector. The PMIs for each of Housing, Commercial and Civil Engineering all remained below 50. Civil Engineering was again the weakest sub-sector, as the ongoing retrenchment in the Exchequer Capital Programme continues to contribute to this area’s underperformance. However, the overall PMI did rise by 2.5 points in November to stand at 47.7.

This is the highest reading since February, and is consistent with an easing of the pace of decline in overall construction activity. This was especially the case in the Commercial sector where the activity index rose to its highest level in fifteen months and, at 49, is now flirting with the breakeven mark. Elsewhere in the survey, there was a marginal uptick in firms’ confidence about future business activity, but perhaps next month’s results in this area will be of more interest in terms of whether there will be any end of year boost to sentiment from the support measures targeting the property sector introduced in last week’s Budget.”

The number of firms polled has not been supplied, which suggests that the sample is small.

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone. 

Business executives who put a premium on time and value high quality information, should use our service.

Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Global Survey 2006: Cost of comparable house in Dublin, Ireland, could buy 9 in Houston, Texas, 3 in Amsterdam, 2 in Sydney and Tokyo
Irish and UK commercial property markets strengthen in 2014
Irish construction PMI highest since 2006 - number of firms polled withheld
Irish Residential Property Prices: Government wants higher prices
Switzerland reaches for the skies – despite protests
NAMA sells complete Northern Ireland loan portfolio that had par of £4.5bn
Irish House Prices 2014: Daft.ie says prices ex-Dublin up in Q1; MyHome.ie says prices slightly fell
Irish home mortgage approvals in 2014 at 42-year low
Irish House Prices 2014: National prices up 8.1% in year to February
Irish House Rents: Dublin rents up 2.1% in Q4 2013; Down 0.9% ex-Dublin
Irish construction PMI rises from low base; Number of firms polled low
Irish mortgages in arrears 360 days+ at 60,422 - 7.9% of total accounts
Irish House Prices 2014: National annual rise at 6.3% in January; Dublin prices fell to 13.6% increase
Number of Irish home mortgages issued in 2013 fell to a 40-year low
Dublin house sales at 10,000 in 2013; 246 sales at €1m+; Lowest at €6k
London office rents remain world's highest; Dublin at 25th of 67 locations
Irish commercial property returns rose to 12.7% in 2013
Irish House Rents: Up 7.1% in Q4 2013 year-on-year nationally; Dublin rise at 11.2%
Irish Economy 2014: Construction PMI up sharply; Caution on small sample
Irish House Prices 2013: Dublin prices rose 15.7% in year; National prices up 6.4%
Dublin second-hand house prices rose by 17.7% in 2013
UK commercial property returned 10.9% in 2013
Ireland is one of 'hottest' hotspots for European commercial property deals
Irish construction activity rises again in December
Irish industrial property market back at 2007 levels; Blackstone and Google in Dublin office deals
Irish House Prices: Asking prices in Dublin commuter counties stabilised in 2013
Irish House Prices 2014: Dublin main challenge as asking price gulf surges to 28%
Irish House Rents: Average rent in Dublin in Q3 2013 was €1,041
Irish construction PMI in sharp rise; Firm sample likely small
Irish mortgage arrears less than 90 days fall and over rise
Irish House Prices up 15% in Dublin; Mortgages issued at 1974 level
UK taxpayers providing £5bn a year subsidy to buy-to-let landlords
Irish ghost estates to be demolished; Arrears activist group agree pilot scheme with AIB
Irish mortgage affordability index shows rise for Dublin first time buyers
Commercial property outlook improves in Ireland and Spain
Where have all the empty Irish houses gone?
Irish mortgage drawdowns rose in Q3 2013 but remain at 39-year low
Irish House Rents: Nationwide year-on-year rise at 4.8% in Q3 2013
Irish construction PMI in sharp rise; Small sample and no jobs added
75% of 83,000 Irish residential mortgages in arrears of 90 days+ not restructured