8th Sep 2026 01:29
(Alliance News) - Ireland's construction sector activity growth slowed in August, although the 12-month outlook improved, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index fell to 50.7 points in August from 53.0 points in July.
A reading above the 50.0-point neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
John Fahey, AIB senior economist, said: "Looking at the sectoral breakdown, the expansion in activity levels was less broad-based than in July. Commercial activity retained its position as the top performer and was the only sector to record growth during the month.
"The residential sector was unable to maintain its momentum from July, falling back into contraction territory last month. Meanwhile, civil engineering activity levels were broadly unchanged in August."
Survey respondents attributed August's increase in activity to an improvement in demand as well as efforts to complete projects quickly.
Staffing levels continued to rise for the tenth month in a row, although the rate of job creation in August was the slowest recorded over the period.
Construction companies reported greater purchasing activity with input buying up for the first time in three months.
However, price pressures continued during the month as the rate of increase in input costs accelerated, with respondents highlighting costs linked to oil and metals in particular.
"Meanwhile, construction firms' level of confidence in the prospect of higher activity levels over the coming 12 months strengthened for a fourth consecutive month in August. The improvement in sentiment was underpinned by rising new orders and a healthy pipeline of new projects," AIB's Fahey commented.
The index is compiled each month using responses to questionnaires sent to a panel of 150 construction companies in Ireland.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.