The monthly Irish Construction PMI reports shows
that the rate of growth in new business quickened sharply to the strongest since
November 2004 and the pace of job creation picked up. This however is a
The Ulster Bank Construction purchasing managers’
index (PMI) - - a seasonally adjusted index designed to track changes in total
construction activity - - rose to 62.6 in July from 59.9 in the previous month
and signalled the fastest rise in activity in three months. Total activity has
now increased in each of the past 11 months with panellists linking the latest
rise to higher new orders, and in some cases the release of projects that had
previously been on hold.
The headline is misleading as the number of firms
polled, which is not disclosed, is likely to be a fraction of the 2004 level.
The PMI measures sentiment and
Simon Barry, chief economist Republic of Ireland at Ulster
Bank, commented that: "It is important to recognise
that levels of residential activity remain extremely
low following the huge correction which took place over 2007-2013.
Nonetheless, the evidence provided by the PMI – and indeed other data sources,
including Department of Environment figures on house completions – indicates
that housing activity trends are clearly on an improving trajectory.”