Construction-sector confidence dips to 18-month low

The rate of contraction in the construction sector has worsened and confidence has dipped to an 18-month low, according to a new survey.

The Ulster Bank Construction PMI survey shows the fall in employment in the sector in November was the fastest in six months.

The rate of decline was worst in the civil engineering area due to a 23% fall in Government funding of capital projects.

Ulster Bank Chief Economist Simon Barry said confidence was also negative: decreasing for the first time since December of last year.

"One of the areas of particular weakness is in civil engineering, which is probably linked to the ongling sharp retrenchment in government capital spending," Mr Barry said.

"There's been a sharp fall in confidence regarding prospects in the sector - confidence has fallen to an 18-month low and again, that looks to be at least partly related to the fact that government capital spending next year is going to be lower than thought."