Ireland Construction Activity Grows Further

(RTTNews) - Ireland's construction activity increased for the third successive month in November, albeit at a slower pace, helped by further improvement in new order growth.

The Ulster Bank Construction Purchasing Managers' Index (PMI) slid to 58.8 from 59.4 in October, Markit Economics said Monday. A PMI score above 50 indicates growth in the sector.

New orders rose for the fifth month in a row and the sharpest rate since October 2006. Stronger demand was seen both from the domestic market as well as from abroad. Consequently, the rate of job creation strengthened significantly, following two months of marginal growth.

Purchasing activity increased for a third month and business sentiment was the highest since the survey began in June 2000.

"In keeping with the pattern of the last several months, the improvements are being underpinned by recoveries in both the Housing and Commercial arenas where activity has now increased in each of the past five and four months respectively," Simon Barry, chief economist at Ulster Bank, said.

"Near-term prospects for the sector appear favorable, judging by a further acceleration in the rate of growth of new business."

However, Barry pointed out that activity levels in the Irish construction sector remain extremely low following the 2007-13 crash. Hence, the recent improvements in construction activity and confidence need to be seen in the context of the huge declines of recent years, the economist added.