New homes are in huge demand but housing construction activity has fallen sharply

The pace of reduction in housing activity accelerated sharply over the month, with civil engineering activity also down at a rapid pace

The pace of reduction in housing activity accelerated sharply over the month, with civil engineering activity also down at a rapid pace.  Picture: Brian Lawless

Activity in Ireland's construction industry fell for the second consecutive month with the housing sector recording the biggest drop as strong inflationary pressures resulted in a fall-off in demand and new orders.

According to a survey of purchasing managers who work in the building industry, as tracked by the BNP Paribas Real Estate, companies in sector remain pessimistic for the future and are scaling back their purchasing activity and taking a cautious approach to hiring.