Construction sector ‘half the size it should be’ as output to fall to 6%

The construction industry is half the size it should be for an economy the size of Ireland, according to a report by the Society of Chartered Surveyors Ireland.

Output in the construction sector is set to fall to 6% of gross national product (GNP) in the current year and to just 5.6% of GNP next year, according to a report prepared by DKM Economic Consultants on behalf of the society.

Having peaked at close to €39bn, or almost 25% of GNP in 2006, output fell to €8.7bn in 2011, or 7% of GNP, well below what would be considered “normal” levels of construction output.