The AIB Ireland Construction PMI rose to 50.2 in May 2026, up from April’s five-month low of 47.1, supported by a renewed expansion in output and new orders. New business returned to growth after recording its first decline in five months in April, signaling an improvement in client demand. The recovery was led by stronger commercial activity, which increased at its fastest rate since March 2022.
In response to higher new orders, firms expanded both staffing and purchasing. Employment grew solidly for the seventh consecutive month, while input buying recorded a modest increase. Supplier delivery times lengthened again, though the deterioration in lead times was less pronounced than in April.
Input costs rose, largely reflecting higher fuel and oil prices linked to the conflict in the Middle East, although the overall pace of cost inflation eased slightly compared with the previous month. Business sentiment also improved from April’s 41-month low, supported by hopes that an eventual end to the war in the Middle East will help strengthen business conditions.
