13th Jan 2026 02:45
(Alliance News) - Ireland's construction activity continued to contract in December, albeit at a weaker pace, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index rose to 48.4 points in December from 46.7 in November as new orders returned to growth at the end of 2025.
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.
According to S&P Global, weakening activity remained broad‑based in December, although the pace of contraction eased across all three sub-sectors.
"In this context, the best performing of the three was the residential sector. Homebuilding activity declined for an eighth month in-a- row, although the pace of contraction was the mildest since May. Commercial activity contracted for a second successive month. Meanwhile, civil engineering remained the weakest of the three sub-sectors," said John Fahey, AIB senior economist.
Irish construction firms increased their staffing levels and purchasing activity in December and reported a renewed rise in subcontractor use.
However, supplier deliver times lengthened again at the end of the year, with firms reporting stock shortages.
In addition to difficulties sourcing materials, constructors were hit by another sharp rise in input costs, with metals such as aluminium, copper and steel among the items reported to be increasing in price.
When it comes to business confidence, Fahey commented that: "optimism amongst construction firms, on the prospect for increasing activity levels over the coming 12 months strengthened to its highest level in nearly a 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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