Construction output rises 2.1% in Q1

Building and construction output rose 2.1% in the first quarter of this year, when compared to the final three months of 2013, fresh CSO data shows.

The latest figures reflect an increase of 0.2% in non-residential building activity and falls of 3.7% and 4.2%, respectively, in civil engineering and residential building work.

On a year-on-year basis, the rise in construction work amounted to nearly 8%, with non-residential work up by just under 29% and increases of 4% and 2.6% seen in residential and civil engineering works.

The CSO data comes just days after the latest monthly construction PMI from Ulster Bank; one of the chief health barometers for the sector. The May index showed a ninth consecutive month of growth, despite an easing in the rate of expansion from April’s historic highs.

“While residential and civil engineering work remains weak, the rise in overall output was entirely driven by a sharp increase in non-residential work over the year. This reflects a pick-up in activity in the private commercial sector,” said Davy Stockbrokers’ David McNamara.

Construction sector employment rose by 6.2% year-on-year during the first quarter of 2014, the fastest pace of growth since 2007.

“The recovery in construction has the potential to boost employment significantly, reaching 150,000 compared to a current level of 103,000,” Mr McNamara added.