Irish construction contracted at a record pace in April, as office and public infrastructure building declined and home building remained weak.
An index of construction fell to 34.3, the lowest since the series began in June 2000, from 36.6 in March, Ulster Bank said in a monthly report published in Dublin today. A reading below 50 indicates contraction.
Ireland's decade-long housing boom is ending, prompting construction companies to scale back projects and cut jobs. Home building, which accounts for about 10 per cent of the economy, may drop by more than a third this year, the Government forecast.
"Respondents were more pessimistic regarding the future, expecting that activity in a year's time will be slightly below current levels," said Pat McArdle, chief economist at Ulster Bank. "This is consistent with our view that new house completions next year will remain low as the overhang of supply is cleared."
The gauge measuring civil engineering fell to 34.4 in April from 37.8 in March, according to today's report. The commercial construction index dropped to 39.2 from 46.4 and the home building measure rose to 28.4 from 27.6.
The sub-index of new orders also declined last month.
Bloomberg