Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Tue November 21 2017

Related Information
Related Information
Related Information

News » Data » Ireland sees near-record rise in construction employment » published 16 Feb 2017

Ireland sees near-record rise in construction employment

Figures for January show a near-record rise in employment in the Irish construction sector as companies responded to greater workloads.

employment PMI figures since 2000 - click to enlarge Above: employment PMI figures since 2000 - click to enlarge

Activity in the sector continued to rise sharply on the back of higher new orders.

The Ulster Bank Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted index designed to track changes in total construction activity – posted 55.7 in January to signal a further marked monthly increase. The figure was down from 58.9 in the previous month, signalling a slower pace of expansion for the third month running. Figures above 50 signal growth.

The rate of job creation was the second-fastest in the survey’s history, just behind the record seen in November 2004. Approximately 27% of respondents signalled a rise in staffing levels during the month.

Simon Barry, chief economist Republic of Ireland at Ulster Bank, said: “Irish construction activity continues to grow at a healthy pace according to the latest results of the Ulster Bank Construction PMI. The headline PMI index remained comfortably in expansion territory in January, albeit that the pace of growth eased for the third month running consistent with a modest loss of momentum early in 2017 after a robust end to last year. Very encouragingly, residential activity remains a particular bright spot with housing activity continuing to rise at a rapid pace, while commercial activity also very much remains in expansion mode, though the pace of growth has eased in recent months. Civil engineering continues to lag behind the other sectors, with respondents reporting a third consecutive monthly decline in activity.”

He added that respondents continue to judge the Irish construction outlook to be very favourable. “Confidence about future activity prospects remained strongly positive in January amid further solid gains in new orders, despite some easing in the rate of increase. Indeed, buoyed by the ongoing increase in work volumes, last month saw a substantial and accelerated rise in staffing levels with the rate of job creation picking up to its second-fastest in the survey’s 16 ½ year history.”

Barry said that a note of caution stems from further evidence of building cost pressures with the rate of input cost inflation picking up to its quickest in almost 10 years. Respondents reported higher prices for oil-related products and for items sourced from UK suppliers, the latter effect consistent with growing signs of Brexit-related price and costs increases in the UK economy.

Construction firms remained strongly optimistic that activity would increase over the coming 12 months, with close to 60% of panellists forecasting an expansion. Positive sentiment was linked to confidence in the wider Irish economy and predictions of future new order growth.

 

MPU

Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 16 Feb 2017 (last updated on 16 Feb 2017).

More News Channels