Construction sector grew strongly in August

THE rate of growth in the construction sector picked up in August, according to the latest Ulster Bank purchasing managers’ index.

The PMI index rose to 66.1 in August from 55.6 in July. A measurement above 50 signals growth in the sector. Ulster Bank said the figure in August marked two years of increasing output in the sector.

The bank’s chief economist Pat McArdle said August was traditionally the time when most builders took their holidays and activity declined. However, he said August registered the biggest monthly increase since the bank began compiling the index nearly five years ago.

“All three components participated in the expansion with commercial continuing to lead the way. Housing was surprisingly strong on first glance. However there was also a bounce in August 2004 so the overall picture may not have changed much.”

He added that the civil engineering sector bounced back into positive territory last month, but was still flat for the year so far, making it the weakest part of the construction market.