Construction growth reaches five-month high

December saw accelerated residential and commercial building activity with construction sector output growth quickening to a five-month high.

The latest edition of the monthly Ulster Bank construction purchasing mangers’ index (PMI) — the main barometer of health for the building sector — delivered a reading of 58.6 points; well above the neutral 50 point mark which separates an industry in growth mode from one in contraction and up from a reading of 55.5 in November.

“Overall activity trends were buoyed by a strong acceleration in both commercial and housing activity, with the pick-up in the residential arena a particularly welcome development given concerns about the housing supply shortfall.