Signs of construction ‘stabilising’

Housebuilding activity increased for the first time in 19 months showing that there are some tentative signs of stabilisation in the construction sector, though at very low levels, according to the Ulster Bank Construction purchasing managers’ index.

The index was 47.5 at the end of July, which was up from 43.4 the previous month. However, any reading below 50 shows that overall, the sector is still contracting.

“There were signs of emerging stabilisation in the Irish construction sector in July according to the latest reading of the Ulster Bank Construction PMI,” said Ulster Bank chief economist Simon Barry.