Property
Irish construction PMI rose sharply in June -- based on small sample
By Finfacts Team
Jul 14, 2014 - 9:27 AM

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A further expansion in Irish construction activity was recorded in June, extending the current sequence of growth to ten months. The latest rise was supported by sharp new order growth, which also led to increases in employment and purchasing activity. Meanwhile, the rate of input cost inflation remained solid despite easing from that seen in May. However, we must assume that the firm sample is small as it's not disclosed.

The Ulster Bank Construction PMI (purchasing managers’ Index) - - a seasonally adjusted index designed to track changes in total construction activity – recorded a reading of 59.9 in June, down slightly from 60.2 in May but still signalling a sharp expansion of activity in the sector. Activity has risen continuously since September 2013.

Simon Barry, chief economist Republic of Ireland at Ulster Bank, said: “The results of the June survey of the Ulster Bank Construction PMI confirm that activity trends in Irish construction firms remained robust at the end of the second quarter. The headline PMI eased back a touch last month but still remains at a very elevated level, consistent with ongoing solid improvement in the sector, albeit from the very depressed levels reached in the downturn. The June survey affirmed that housing and commercial activity remain areas of particular strength as each sub-sector registered further rapid rises in activity.

Growth in housing activity leads overall rise: The residential sector was the best-performing of the three monitored construction categories in June, with activity on housing projects increasing at a substantial and accelerated pace. Commercial activity continued to rise markedly, albeit at a slower rate than in the previous month. Meanwhile, a solid decline in civil engineering activity was recorded, with the pace of reduction faster than that seen in May.


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