12th Aug 2025 08:27
(Alliance News) - Ireland's construction activity continued to shrink in July, and declined more quickly than the month prior, according to date released Tuesday.
The AIB Ireland construction purchasing managers' index decreased to 47.1 points in July from 48.6 in June.
The reading is below the neutral 50-point mark that separates growth from contraction, and marks the third consecutive month of decline.
Back in April, the headline index rose to 53.9 points, the strongest reading in three years, and the first increase in three months. However, the indicator returned to contraction territory in May and has remained there since.
By category, activity in July slowed in both housing and civil engineering, while commercial construction was the only area of growth. Commercial work increased for the sixth month in a row, but at the slowest rate in that half-year period.
New orders also increased for the six month running, though the rate of growth hit its lowest point since February. Companies suggested that underlying demand had improved, as well as noting customer hesitancy and a competitive pricing environment.
Input cost inflation accelerated to above the average rate for the series, and firms saw longer delivery lead times. Staff levels at construction companies were up for the fifth consecutive month, though purchasing activity was reduced and sub-contractor usage fell for the first time in fourth months.
Meanwhile, business confidence was at its weakest since November 2022.
AIB Senior Economist John Fahey noted that" the subdued performance evident over the May-June period has carried over into the start of the third quarter."
He added: "Construction sector firms maintained an optimistic outlook that activity levels would increase over the coming 12 months, although this level of sentiment was at its weakest since
2022."
The data was compiled by S&P Global based on survey responses from a panel of around 150 construction companies, collected between July 10 and July 30.
By Holly Munks, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.