THE RATE of decline in construction activity eased further last month from the sharp falls at the end of last year, according to the latest Ulster Bank Construction Purchasing Managers’ Index.

However, new business dropped and job losses increased at heavier rates as demand in the building sector remained subdued.

Although the latest reduction was the slowest in six months, this was the 45th consecutive monthly decline in building activity.

“Scarce new business has meant that employment in the sector fell off at a faster pace in February and even modest job gains continue to look some way off,” said Lynsey Clemenger, economist at the bank.

The rate of job losses “remained substantial”, said the bank, as companies reduced staffing levels to match falling workloads.

The steepest reduction in activity was in civil engineering again last month.

Northern Irish firms battling with the economic slowdown suffered yet another drop in new business orders, activity and employment last month, according to the bank’s purchasing manager index for the entire Northern economy.

Unsurprisingly, one of the sectors worst hit with the biggest drop-off in work was construction.

Although in general private sector activity slumped again in February there are some indications that the pace of decline may have eased in certain areas.

The rate of contraction has eased in some cases to its slowest level since December 2009.

Richard Ramsey, chief economist with Ulster Bank in the North said this is an encouraging sign.

He said although firms have continued to report further downturns there has been an improvement in terms of output and new orders.

He believes that the continued growth within the UK as a whole and what he described as a “rebound in business activity” in the south should largely benefit Northern Irish firms.