11th Nov 2024 06:45
(Alliance News) - The decline in construction activity in Ireland slowed in October as companies were increasingly confident that activity may speed up again, data published by S&P Global showed Monday.
The headline seasonally adjusted BNP Paribas Real Estate Ireland construction total activity index edged up to 49.4 in October from 49.0 in September. Getting closer to the neutral 50-points mark separating growth from contraction, it indicates the pace of the fall in activity slowed.
The index for housing activity improved to sound growth of 56.4 in October from 51.0 in September.
The index for commercial activity however ticked down to 47.0 in October from 47.9 in September, indicating the fall of activity accelerated.
Finally, the index for input costs increased to 60.1 in October from 59.6 in September, indicating sharply increasing input costs.
S&P Global said: "Despite slight reductions in both activity and new orders in October, firms were increasingly confident that construction output will rise over the coming year. Sentiment was slightly stronger than the series average. Some respondents predicted a renewed increase in new orders, while others highlighted confidence in demand for housing."
John McCartney, director & head of Research at BNP Paribas Real Estate Ireland, said: "The big take-away from October's PMI is the surge in residential construction. After contracting continuously through 2023, the housing sub-index has now been stable or rising for the last nine months. However the rate of expansion accelerated sharply in October. Deadlines to avail of the development levy waiver and the water connection charge refund drove sharp spikes in the number of commencement notices filed in April and September respectively. But a condition of these incentives is that units must be completed before end-2026. So, with the paperwork done, developers are now getting on with the actual construction."
The BNP Paribas Real Estate Ireland construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies. The panel is stratified by company workforce size, based on contributions to GDP. The responses were collected between October 10 and 30.
By Tom Budszus, Alliance News slot editor
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