Construction 'to stay under pressure' for near-term, survey warns

Steepest decline in housing but falls in commercial construction and civil engineering activity were the largest seen since April and May of last year, respectively

Housebuilding activity took the worst hit as construction activity tanked in January due to Covid restrictions.

The construction sector is expected to continue to suffer “significant pressure” for the foreseeable future, as lingering Covid restrictions take a toll, but building firms remain confident about prospects over the next 12 months.

“The sector is likely to remain under significant pressure in the near-term,” said Simon Barry, Ulster Bank’s chief economist in the Republic. “But, more encouragingly… Irish construction firms continue to express optimism in the year-ahead outlook, reflecting expectations that workloads will improve again once the health picture improves and restrictions are eased,” he said.