9th Jun 2026 01:44
(Alliance News) - Ireland's construction activity returned to growth in May, driven by the commercial sub-sector, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index rose to 50.2 points in May from 47.1 points in April.
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.
John Fahey, AIB senior economist, said: "Commercial remained the best performing of the three sub sectors. Activity in the sector increased for a fourth consecutive month, and at the fastest pace since March 2022.
"In contrast, housing activity declined for a second successive month, and at a sharper rate than in April. Similarly, civil engineering retained its position as the weakest performing of the three, with activity in the sector falling for a thirteenth month in-a-row."
S&P Global said anecdotal evidence indicates that the increase in construction activity in May reflected stronger customer demand and greater workloads, with new orders returning to expansionary territory.
Both employment in the construction sector and input buying grew for the seventh month in a row, although the latter increased at the slowest pace since January.
Constructors increased their use of sub-contractors in May, however the availability of sub-contractors deteriorated and the rates they charged rose at the quickest pace recorded since July 2022.
"Supplier delivery times continued to lengthen, albeit at a slower rate than in April. At the same time, the war in the Middle East raised fuel and oil prices once again, which led to another sharp rise in firms' input costs. Indeed, input price inflation eased only slightly from the near 4-year high seen in April.
"Encouragingly, business expectations rebounded from April's 41-month low, although the degree of optimism remained relatively subdued," AIB's Fahey said.
This optimistic outlook is supported by expectations of an improvement in new orders and a potential end to the conflict in the Middle East.
S&P Global compiles the PMI each month using survey responses from a panel of around 150 construction companies in Ireland.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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