10th Feb 2026 02:53
(Alliance News) - Ireland's construction sector activity continued to contract in January, although survey respondents expressed growing optimism for the coming twelve months, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index increased to 48.6 points in January from 48.4 in December.
A reading above the 50-point neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
This latest reading marks the ninth successive month in which total activity in the sector has declined, with S&P Global highlighting a modest drop in output during the month.
That being said, new orders improved in January as new business expanded for the second month in a row and at the fastest pace recorded since March.
"Those firms that recorded a rise in new orders often linked this to improving demand," S&P Global explained.
This in turn spurred further hiring, with staffing levels rising for the third consecutive month.
John Fahey, AIB senior economist, said: "Looking at the sectoral breakdown in the survey, the weakness in activity remained broad-based in January, with all three sub-sectors registering contraction.
"The best performing of the three was the commercial sector. The pace of decline in this sector eased for a second consecutive month. Meanwhile, the residential sector extended its current period of contraction to nine months, with the pace of decline worsening compared to the previous month.
"Elsewhere, civil engineering remained the weakest of the three subsectors, albeit the rate of contraction eased slightly."
Optimism in the sector improved for the second month in a row and business confidence reached a one-year hire with 34% of survey respondents expecting construction activity to increase over the next twelve months compared to only 10% who were pessimistic.
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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