The AIB Ireland Construction PMI rose to 53.2 in March 2026 from 52.1 in February, signalling the fastest expansion since March 2025 amid another solid increase in new orders. New business grew for the fourth month in a row, although the pace of expansion eased slightly from February’s four-year peak. Employment also increased, with job creation at its quickest rate in 15 months.
Growth was underpinned by both commercial construction and housing activity, with each segment posting its strongest expansion in a year. In contrast, civil engineering activity remained in contraction, though the rate of decline was the slowest seen in the current 11‑month downturn. Purchasing activity registered its sharpest rise in just over four years.
On the cost side, input price inflation accelerated to its highest level since December 2022, primarily reflecting higher fuel costs. Suppliers’ delivery times lengthened, as courier shortages and rising fuel prices disrupted logistics. Finally, business sentiment softened to a four‑month low, weighed down by concerns over the impact of the war in the Middle East.
