FX.co ★ Irish Construction Activity Returns to Contraction

In May 2025, Ireland's BNP Paribas Real Estate Construction PMI declined to 49.2 from 52.4 in April, indicating a sector contraction for the first time since February. This drop highlights growing market uncertainty and a noticeable decrease in demand. Growth in new orders slowed to its lowest point in three months, primarily influenced by doubts about US trade policy. Although employment saw a modest increase, job creation has hit its highest level since January. Commercial activity continued its expansion for the fourth consecutive month, matching April's momentum. However, housing activity experienced its first contraction in nine months, and civil engineering encountered the most significant downturn among the three sub-sectors. While purchasing activity continued to rise, delivery times were significantly delayed, mostly due to staff shortages. Regarding pricing, input cost inflation remained steady, persistently exceeding the series average. Overall, sentiment stayed positive, bolstered by the anticipation of new projects progressing.