Fall in building activity worsens

OPERATING conditions in the construction sector worsened further last month, with the fall in building activity speeding up.

The latest monthly Ulster Bank Construction Purchasing Managers’ Index (PMI) – one of the main barometers for the sector – measured 40 for May, down from 42.5 in April. The survey has shown that building activity has consistently fallen on a monthly basis since June 2007.

“The May reading indicates that the recession in the beleaguered construction sector has now lasted for three full years, as the index level of 40 was the 36th consecutive reading below the 50 break-even level,” commented Simon Barry, Ulster Bank’s chief economist.