Construction sector remains in contraction as new orders and jobs increase

Activity remains below growth threshold, but rising demand, jobs and confidence point to improved conditions next year

The residential sector was the best performing sub-sector during December. 

Construction activity continued to fall in December, but an increase in new orders and expanded employment presented a more “upbeat picture” for the sector heading into 2026, the latest AIB Construction Purchasing Managers Index (PMI) shows.

During December, the PMI had a reading of 48.4 — up from 46.7 recorded in November. However, this is still below the 50 mark which indicates the sector went through a contraction during the month.