Construction up slightly last month

Construction increased at a slightly faster pace in September but the rates of growth in new orders and employment both eased, according to the latest Ulster Bank purchasing managers’ index (PMI), writes Pádraig Hoare.

The index, which measures changes in total construction activity, rose slightly to 56.5 in September from August’s 29-month low of 55.1. Any reading over 50 represents an expansion in activity.

Activity has now increased in each of the past 49 months, with a sharp expansion signalled at the end of the third quarter, the bank said. Chief economist for the Republic at Ulster Bank, Simon Barry said: “The latest results show that construction activity re-accelerated in September, halting a three-month sequence of deceleration from the exceptionally rapid growth recorded in May.”