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ACTIVITY IN THE construction sector has increased for the tenth month in a row, a new survey shows.
The Ulster Bank Construction Purchasing Managers’ Index (PMI) recorded a reading of 59.9 last month, continuing a slow downward trend in the rate of growth after a rise to 63.5 in April.
Suppliers are reportedly struggling to keep up with the successive increases in demand as delivery times “lengthened sharply” this month.
The residential sector performed the best of the three analysed.
A rise in the level of job creation was also recorded for the tenth month in a row, but at its slowest pace since January. Input buying rose sharply.
This month’s index readings have been described as “robust” by the bank’s chief economist Simon Barry.
“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,” he said.
The June survey affirmed that housing and commercial activity remain areas of particular strength as each sub-sector registered further rapid rises in activity.
Barry added at the current outlook is “favourable”, noting the “continued buoyancy of new orders”.
Last week, the Government announced that new planning laws are in the works to achieve a ‘faster recovery and higher standards’.
It will also aim to enable local authorities to incentivise the use and development of vacant sites.
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Seeing a stabilisation but not an improvement… Overall picture is probably brighter but is skewed by the Dublin market and by the fact a lot of construction companies are doing well abroad. Overall a positive story but it has yet to trickle down to the smaller businesses in the sector.
Although welcome on the surface, you have to remember that the Irish construction sector slumped 70% between 2008 and 2013.
And some 70,000 Irish construction workers on the dole. And for more than two years.
Not to mention those that have emigrated.
Any substantial recovery has a very long way to go.
Declan,
Working in the industry, as I do, I am hear a lot of positives.
As Sean has said below, the industry was over inflated back then, but is still too small at present.
It will stabilise, but not all of those workers that were employed in the industry will find jobs back in it.
I admit, I’m lucky. I’ve been able to stay in the industry. I worked freelance, but never went for the big money, I kept my rates to a reasonable wage. This has stood me well now. The contractors I worked for are all still in business as they were all contractors, not developers. They recognise that I wasn’t greedy during the boom and they have continued to employ me in the recession.
I played the long game as I knew it would never last.
The construction sector is still only at a 1/3 of the size it needs to be for our current economy.
It was too big 7 years ago and now it is too small.
have your say