Construction shows some stabilisation

There are tentative signs of stabilisation in the construction sector, although overall activity remains at very weak levels, according to the latest Ulster Bank Construction PMI.

The Ulster Bank Index had a reading of 43 last month, which was an increase on the 42.6 in November. Anything below 50 means that the sector is contracting.

Although the reading may have signalled a further steep reduction in activity, the rate of decline has eased slightly to the weakest level since 2012. Moreover, the building firms canvassed for the survey expected a stabilisation in the market over the coming year on the back of improving economic conditions.