Industry & Business

Construction Activity Rises for 40th Month in a Row

 Breaking News
  • Technology Plays a Leading Role For Irish Business Leaders Business leaders across Ireland are firm believers in the power of technology and the important role it plays, not only in supporting their own business needs, but in overcoming the wider socioeconomic issues they face. According to research – Technology in a Transforming Ireland – of Irish business leaders commissioned by Fujitsu, nearly 6-in-10 (59 percent) say [...]...
  • Only 11% of Irish Businesses Using Renewable Energy Irish businesses have yet to make the switch to renewable energy but are looking for cleaner energy alternatives, according to new research from Calor Gas. Just 11% of Irish businesses report that they are using renewable energy. Of the businesses not using renewable energy, 85% are open to switching to a renewable alternative. The figures were [...]...
  • Research Reveals SMEs Lose €2.2 Billion a Year in Productivity Due to Administration Sage, a market leader in cloud accounting software, has revealed that Irish SMEs lose up to €2.2 billion annually in productivity due to burdensome administrative tasks. The report, ‘Sweating the Small Stuff: the impact of the bureaucracy burden’, undertaken by Plum Consulting, shows businesses in Ireland spend an average of 70 working-days per year navigating the [...]...
  • European Commission Takes Action For a More Competitive and Innovative Financial Market The European Commission has unveiled an Action Plan on how to harness the opportunities presented by technology-enabled innovation in financial services (FinTech). Europe should become a global hub for FinTech, with EU businesses and investors able to make most of the advantages offered by the Single Market in this fast-moving sector. As a first major deliverable, [...]...
  • 40% Think Irish Government Not Doing Enough to Protect Ireland From Impact of Brexit Brexit is coming closer and still a lot of questions remain unanswered. People are insecure not only about their own future but also the economic future of Ireland. iReach Insights conducted a nationally representative survey and 1,000 adults were asked about their opinion about the Brexit, it’s potential impact and what Irish people would do, [...]...

Construction Activity Rises for 40th Month in a Row

Construction Activity Rises for 40th Month in a Row
January 16
13:33 2017

The Ulster bank Purchasing Managers’ Index (PMI) for December, released on Monday, showed that activity in the construction sector constinued to rise until the end of 2016. The report gave December a 58.9 in December, down from 59.8 in November. For the PMI index, and reading above 50 represent a growth over the previous month.

Rates of job creation and growth of purchasing activity remained “substantial” while the rate of new orders grew. Most firms firms were reported to be “strongly optimistic” that activity would increase further in 2017.  However, the report warned that the rate of input cost inflation accelerated sharply to the strongest since March 2007.

Construction activity has now risen in each of the past 40 months, with the most recent expansion attributed to higher new work volumes.

“The December results of the Ulster Bank Construction PMI survey indicate that Irish construction firms continued to experience sharp increases in activity last month,” Chief Economist Republic of Ireland at Ulster Bank Simon Barry said. “The headline PMI was recorded at 58.9 in December, down slightly from November’s 59.8 but still signalling robust expansion of activity. Both the residential and commercial sub-sectors remain particular sources of strength for survey respondents, with activity in both categories continuing to rise at rapid rates, albeit slightly less rapid than was the case in November. Civil engineering remains an area of weakness, however, with activity here decreasing for the second month running.

“Overall, the December survey results round off another strong year of recovery for Irish construction firms, with the PMI consistently pointing to ongoing healthy expansion throughout 2016. Moreover, momentum behind the sector’s recovery continues to look encouragingly solid, with a marked pick up in New Orders in December indicating that activity trends look set to remain positive in early 2017. Furthermore, firms themselves remain strongly optimistic about the coming year with almost two thirds of respondents expecting further growth in activity in the coming 12 months. While a notable late-year pick up in input prices points to increased challenges on the costs front, positive sentiment about the year ahead is being underpinned by signs of improving conditions in both the construction sector itself and the wider Irish economy.”

However, civil engineering activity reportedly decreased for the second month in a row and at the “fastest pace since April 2014”.

New orders have risen for the last three-and-a-half years, with December seeing a faster expansion than November. Rising workloads led construction firms to hire more stadd again at the end of the year. The rate of job was in line with the nine-month high seen in November.

Firms  were recorded as increasing their purchasing activity sharply, extending the current sequence of growth to 34 months. The rate of input cost inflation accelerated sharply during December and was the fastest since March 2007. Panellists reported higher prices for raw materials and manufactured goods. A further deterioration in the performance of suppliers to the construction sector was recorded, with the latest lengthening of lead times the greatest in ten months.

The full report can be read here.

About Author



Related Articles

New Subscriber

Subscribe Here


National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories

Upcoming Events

  • No upcoming events
AEC v1.0.4