Building sector expansion continuing, index reveals

In a further sign of the pick-up in the economy, activity in the construction industry expanded at a substantial pace in June, according to the latest monthly survey of managers in the building industry.

The Ulster Bank Construction Purchasing Managers’ Index — which measures a number of indicators across the sector — showed activity increased at the second fastest pace last month in the 15-year history of the survey, with commercial and housing projects growing strongly.

The index reading rose to 65.7 from 63.3 in May, the fastest rate of growth the survey has posted since November 2004, when the recovery in the industry started to pick up steam. Any reading above 50 means that the construction industry in expanding.

Other sub-indices were also robust. “Sharper expansions of activity were recorded across each of the three monitored sub-sectors in June.

“The strongest increase in activity was again seen on commercial projects where growth was the sharpest since last October,” the survey found.

The employment index also showed the industry was hiring more people.

“Exceptionally strong performances were recorded in housing and commercial activity where in each case growth was close to the record rates seen in the second half of last year.

“More moderate growth was seen in civil engineering though the June survey pointing to a third consecutive month of growth and the best performance since January,” said Simon Barry, chief economist at Ulster Bank Republic of Ireland.