The AIB Ireland Construction PMI dropped to 45.4 in June 2026 from 50.2 in May, signalling the sharpest contraction in construction activity since September 2025. The downturn was broad-based, with output declining across all three monitored sectors. Residential activity led the fall, registering its steepest decline in nearly four years, while commercial activity also contracted, ending a five‑month run of expansion.
New orders fell at the fastest rate since August 2023, as sharply rising prices deterred clients from committing to new projects. In turn, firms cut purchasing activity for the first time in eight months, although employment continued to rise, extending the current sequence of job creation to eight months.
Supplier delivery times lengthened, reflecting shipping disruptions associated with the conflict in the Middle East. Input costs remained elevated, driven by higher oil and raw material prices, even though overall cost inflation eased slightly for the second month in a row. Finally, business confidence strengthened for a second consecutive month.
