Survey shows uplift in building sector

There are signs that the construction sector is beginning to stabilise albeit at very low levels, according to the latest Ulster Bank Construction Index.

The August reading was 49.7 compared with 47.5 the previous month. Anything below 50 shows that the sector is still contracting.

At the height of the property bubble the construction sector accounted for 23% of GDP. Minister for Finance Michael Noonan has said it was important for the economy to have a construction sector averaging 8%-9% of GDP. The sector now makes up less than 5% of GDP.