Ireland’s construction Purchasing Managers’ Index (PMI) fell to 48.0 in October 2026 from 50.4 in September, marking the first decline in construction activity in four months. The downturn reflected weaker output across all three monitored construction segments, alongside a drop in new orders. Commercial and civil engineering activity both slipped back into contraction, joining the already contracting housing sector.
In response to fewer new orders, firms cut employment for a second consecutive month and reduced both purchasing activity and the use of subcontractors. Input costs continued to rise, largely driven by higher fuel prices, although the rate of cost inflation eased compared with September.
The combination of higher input prices and weakening demand prompted construction firms to scale back purchasing for the first time in three months, with buying activity declining at the fastest rate since August 2022. At the same time, supplier delivery times continued to lengthen.
Finally, business confidence deteriorated to a six-month low, as firms expressed growing concern that rising prices would further weigh on customer demand.
