The construction sector in Ireland saw further deterioration in February. However, the rate of decline has been slowing for the third consecutive month, according to statistics from S&P Global released on Monday.
The BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index, a key indicator of the industry's health, showed a slight increase reaching 47.4 points in February, up from January's 45.9 points. It is important to note that a score under 50 still signals the sector is contracting.
In the breakdown of the data, residential activity saw the smallest decline in nearly eighteen months during February. The fall in commercial activity slowed as well and was the least severe in the past four months.
In terms of pricing, the inflation of input costs accelerated to a six-month high, driven by resource shortages due to disruptions in the Red Sea area and staff shortage at suppliers.
When looking into the future, the Irish construction sector remains optimistic about their output over the upcoming twelve months. There is hope that new orders would start growing again. Signs of increasing demand and positivity in the forecast for the year ahead have driven slight increases in employment numbers in the sector during February.
