Construction activity up in November - Ulster Bank

Growth of the Irish construction economy was maintained for a twenty-seventh consecutive month in November, as constructors stepped up activity in response to higher levels of new business.

Despite slipping to a four-month low of 58.2, the headline Ulster Bank Construction Purchasing Managers' Index – a seasonally adjusted index designed to measure the overall performance of the construction economy – remained indicative of a sharp rate of expansion.

Commenting on the survey, Pat McArdle, chief economist at Ulster Bank, noted that: “There was a third quarter mini housing boom when demand, house prices and, if the official statistics are to be believed, supply, all rose unexpectedly.

"Construction output was also boosted by strong pick-ups in commercial and civil. Thankfully, things appear to be easing off and the November rate of expansion was more moderate, albeit still above the experience of the first half of the year. Both commercial and civil eased off recent highs while housing activity gained ground. There is no sign of a slowdown in hiring and confidence remains high. Falling energy prices were reflected in a significant slowing in the rate of cost inflation.”