The Irish construction sector recorded its fifth consecutive month of growth in January, as further new business growth led to another strong rise in activity and an increase in employment.
Although the Ulster Bank Construction Purchasing Managers' Index fell back to 56.4 in January, down from 58.3 in December, this figure still signals a sharp monthly increase in construction activity. Activity has now risen in each of the past five months.
Simon Barry, chief economist at Ulster Bank, said that while the index did pull back a little from its end-2013 levels in January, the PMI "remains comfortably in expansion territory", as it recorded its fifth consecutive above-50 reading.
“The more positive trends in the sector continue to be underpinned by solid increases in activity levels in the home-building and commercial arenas, though respondents reported further declines in civil engineering. The improvement in activity levels, in tandem with another strong gain in new orders, produced a fifth consecutive month of expanding employment, with the pace of hiring picking up in January to its second-fastest in nearly seven years. Moreover, optimism surrounding the prospects for the year ahead remains high among Irish construction firms.”
With workloads continuing to rise sharply, construction firms increased their staffing levels. Moreover, the rate of job creation was solid, having quickened over the month.
