14th Jul 2026 01:20
(Alliance News) - Ireland's construction sector activity contracted as demand weakened in June, S&P Global reported Tuesday.
The AIB Ireland construction purchasing managers' index fell to 45.4 points in June from 50.2 points in May.
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: "The sectoral breakdown showed that the weakness in June was broad-based with all three sub sectors registering contraction. After four months of expansion, commercial registered a fall in activity in June, albeit it was the least weak of the three sectors.
"Meanwhile, activity levels in the residential sector contracted for the third consecutive month and by the fastest pace since July 2022. Elsewhere, civil engineering recorded its fourteenth successive month of contraction."
Purchasing activity was down for the first time in eight months as workloads fell, with survey respondents reporting a fall in new orders amid muted demand and reluctance from clients to start new projects.
The war in the Middle East continued to drive input prices higher with firms citing rising prices for oil and other raw materials. However, the rate of inflaton did ease slightly for the second month in a row.
Employment in the sector continued to rise, increasing for the eighth consecutive month.
"One positive aspect of the June report was regarding optimism on the outlook for construction activity. Confidence levels on the prospect for increasing activity levels over the coming year improved for the second month in a row," AIB's Fahey added.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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