Boom in construction sector still going strong

THE construction sector continued its boom for the 25th month in a row in September, Ulster Bank said yesterday.

Its latest survey of purchasing managers in the sector found more strong gains on the back of high demand for business.

The Purchasing Managers' Index (PMI) was 59.9 for the month, down slightly from the seven-month high of 61.1 in August but well ahead of the 50.0 watershed that marks the difference between positive and negative trends.

Ulster Bank chief economist Pat McArdle said: "After the very strong August bounce, it is not surprising that the construction industry reported a more subdued September, as costs rose sharply, new orders eased back and confidence hit a 22-month low."

Mr McArdle said there was a "dramatic" fall in housing activity but he would not yet attach great significance to this finding because "such sharp movements are frequently reversed."

He also said the civil engineering sector had picked up but was still struggling to keep up with the pace set by other sectors.

"Overall, it looks like this sector will be weaker than it was last year," he said.