Contraction rate in construction slows

The construction sector remains deep in recession, although there are signs that the pace of contraction is slowing, according to the latest Ulster Bank Construction Purchasing Managers’ Index.

The index fell to 45.3 compared with 45.8 for the previous month. Anything under 50 denotes contraction. According to respondents in the survey, the lower rate of new orders was cited as the main reason behind the fall in the index.

Commenting on the survey, John Fahey, economist, Republic of Ireland, at Ulster Bank, said: “The February reading of the Ulster Bank Construction PMI indicates that the business environment remains challenging for Irish construction firms.