2023.02.1304:59:00UTC+00Ireland Construction Sector Logs Contraction In January

Ireland's construction sector posted another contraction in January albeit at a slower pace, survey results from S&P Global showed on Monday.

The BNP Paribas Real Estate Ireland Construction Total Activity Index rose to 47.7 from 43.2 in December.

However, a reading below 50.0 indicates contraction. The latest decrease was the softest since the current downturn first began last October.

The contraction was broad based across all three categories in January. Civil engineering posted the biggest fall in January as has been the case over the past eleven months. Meanwhile, commercial activity posted the softest fall, while housing activity decreased for the fourth month in a row.

Although firms struggled to secure orders, the decline in orders was the joint-weakest in the current ten-month sequence of decline. Further, survey showed that firms raised their workforce for the first time in three months.

Input price inflation continued to increase across a broad range of products. But the rate of inflation eased for the second consecutive month. At the same time, sub-contractor rates increased at an accelerated pace.

The outlook for activity over the coming 12 months brightened in January with sentiment rising to an 11-month high. Firms expect an improvement in demand conditions with new projects set to start in months ahead.