Building sector continues to shrink

THE Irish construction sector continues to shrink rapidly on all fronts and is expected to decline further with almost half of those still engaged in the sector expecting to be engaged in less work this time next year.

The Ulster Bank Construction Purchasing Managers’ Index, a seasonally adjusted index designed to measure the overall performance of the construction economy, rose to 32.9 in April, from 28.1 in March, but remained below the no-change mark of 50.0 that divides expansion from contraction. The data for April signalled a further deterioration of conditions in the construction sector. Employment declined substantially, while the falls in activity and new business remained sharp.

Ulster Bank economist Lynsey Clemenger said that while the rate of contraction remains significant, the decline in commercial activity appears to have bottomed out.