The construction sector in Ireland experienced a continuous decline for the seventh consecutive month in January, primarily due to a severe decline in housing activity, according to a survey released by S&P Global on Monday.
The BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index, a measure of the economic health of the construction sector, increased slightly from December's 45.1 to 45.9 in January. Nonetheless, a score below 50 suggests the industry is contracting.
The survey found that the sector witnessing the most significant decline in January was housing activity, while the contraction in commercial activity was more moderate.
However, there were some optimistic indicators. For instance, employment increased for the second concurrent month in January as construction companies hired additional staff anticipating an increase in future workloads.
In terms of pricing, the rate of input price inflation slumped to a three-month low. However, prices rose sharply, primarily driven by increased shipping costs.
The survey suggests that in the coming months, the construction industry looks set to benefit from an upturn in new business, underlining an optimistic outlook for the sector over the next year.
