Civil engineering still strongest performer

CIVIL engineering continues to be the strongest performing construction sector for the fourth month in a row according to Ulster Bank’s Purchasing Managers Index.

Commercial activity grew at a strong pace, while the housing sector was the worst performing area despite a solid increase in activity during September.

The rate of growth of new business increased with fresh order volumes rising sharply last month.

Greater business levels were increased by marketing and demand, according to the Ulster Bank research.

Employment in the construction sector increased last year, as it has done each month since September 2003.

Firms linked the latest workforce expansion to greater activity requirements due to growth of new business.

In September, firms faced the sharpest rate of input cost inflation for a year in September. Over 40% of companies reported a rise in input costs since the previous month.

Overall, a mood of optimism prevails from the construction industry though the index.

Nearly 40% of firms anticipated that activity would be higher in a year.

Ulster Bank chief economist Pat McArdle said the survey shows that the construction industry continues to expand, driven by strong new orders.

“Employment growth is robust and confidence remains strong. More definitive signs of a slowing in the housing sector are appearing. However, this is being compensated for by civil engineering which continues to boom,” he said.