The AIB Ireland Construction PMI eased to 50.7 in August 2026 from 53.0 in July, indicating a second consecutive monthly rise in construction activity, though only marginal overall. Growth was driven by the commercial sector, where activity increased for the sixth time in seven months. In contrast, civil engineering activity was broadly stable and housing activity recorded a solid decline.
New orders rose for the second month running, with the rate of expansion quickening to its highest level in five months. Stronger project pipelines also boosted business confidence to a six-month high. Firms increased their purchasing of inputs for the first time in three months, although employment growth slowed to its weakest pace in ten months.
Input cost inflation picked up, with oil and metals highlighted as key drivers of higher costs. At the same time, supplier delivery times lengthened at the sharpest rate in four months, reflecting stock shortages and courier constraints. Use of subcontractors continued to rise for the ninth consecutive month, though the pace of this increase moderated.
