9th Dec 2025 01:18
(Alliance News) - Ireland's construction activity fell across all categories in November, marking a seventh straight month of contraction, though firms remain upbeat about the year ahead S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index dropped to 46.7 in November from 48.1 in October as new orders continued to reduce.
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.
According to S&P Global, activities in all three monitored categories decreased, as commercial recorded a renewed and solid decline. Housing projects fell for the seventh consecutive month and at the slowest pace since June. Civil engineering recorded the sharpest decline.
"Commercial construction fell back into contractionary territory in November, having seen a modest pace of expansion in October. The downturn in residential building persisted, with activity levels declining for the seventh successive month. However, the pace of contraction eased in November. Civil engineering also posted a seventh straight month of contraction, with the pace of decline worsening, resulting in it being the weakest performing sub-sector," said John Fahey, AIB senior economist.
Staffing rose for the first time in three months and input buying edged higher, though firms cut back further on subcontractor use amid tighter availability.
Supplier delivery times lengthened again, leaving some companies waiting for stock, while input cost inflation accelerated to its fastest pace since March as suppliers raised charges.
"Some of the other main underlying sub-indices from the November survey provided some mixed news. New orders, which is viewed as a leading indicator, contracted for the fourth month in-a-row, with the pace of decline also accelerating...Despite falling building activity, the sector saw an expansion in employment, following declines in the previous two months," Fahey added.
Looking ahead, Irish construction firms remain optimistic for growth over the coming year.
S&P Global compiles the PMI each month using survey responses from a panel of around 150 construction companies.
By Judy Amaca, Alliance News reporter Asia-Pacific
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