The AIB Ireland Construction PMI edged up to 48.6 in January 2026 from 48.4 in December 2025, indicating a ninth consecutive month of contraction in the sector. All three sub-sectors continued to shrink, with civil engineering remaining the weakest performer, though its rate of decline moderated slightly. This latest reading nonetheless represented the mildest contraction since June, largely supported by robust growth in new orders.
New business rose for a second straight month and at the fastest pace since March of the previous year. In response to higher inflows of new work, firms further increased both employment and purchasing activity, though job creation remained modest. At the same time, suppliers’ delivery times continued to lengthen, reflecting stock shortages and traffic-related delays.
On the price side, input cost inflation accelerated, driven in particular by higher copper prices. Looking ahead, business confidence strengthened to its highest level in a year, underpinned by expectations of a pickup in construction activity.
