9th Sep 2025 02:41
(Alliance News) - Ireland's construction sector posted a broad-based decline in activity in August, with new orders decreasing for the first time in seven months, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index fell to 45.9 in August, down from 47.1 in July.
A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
The index fell short of the neutral mark for the fourth successive month, with the pace of contraction in construction activity accelerating in August.
"The commercial sector ended a six-month period of expansion, falling back into contraction territory, albeit the pace of decline was relatively mild. Residential construction activity contracted for a fourth consecutive month and at a marginally faster rate compared to July. Meanwhile, civil engineering retained its position as the worst performing of the three sub sectors. It registered a fourth straight month of contraction," said AIB Senior Economist John Fahey.
August was the first time in a year and a half that all of the sub-categories posted a drop in activity.
Purchasing activity scaled back and new orders fell for the first time in seven months. Meanwhile, input costs rose with inflation remaining above the series average.
However, hiring activity extended the current period of job creation to six months, supported in part by positive expectations for the future.
"Firms’ level of optimism regarding increasing activity levels over the coming 12 months strengthened in August. An anticipated improvement in housing activity supported this uplift in business expectations," Fahey said.
S&P Global compiles the PMI each month using survey responses from a panel of around 150 construction companies.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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