Construction activity remains below pre-pandemic levels

Output in building and construction declined by 2.4% in the first quarter of 2022 figures from the Central Statistics Office show

On an annual basis, volume increased by 23.0% in first quarter of 2022. Much of this increase can be attributed to the public health restrictions that were in place last year due to the Covid-19 pandemic. Picture: Eamonn Farrell/RollingNews.ie

Figures published by the Central Statistics Office (CSO) today revealed that activity in the construction sector in the first quarter of the year continues to remain lower than pre-pandemic levels.

Output in building and construction declined by 2.4% in the first quarter of 2022 compared to the final quarter of 2021, figures from the CSO show.

However, on an annual basis, volume increased by 23.0% in the first quarter of 2022. Much of this increase can be attributed to the public health restrictions that were in place last year due to the Covid-19 pandemic.

The volume of production in construction in the residential sector rose by 2.8% between the fourth quarter of 2021 and the first quarter of 2022.

Meanwhile, both the civil engineering sector and the non-residential sector experienced declines in construction between quarters. The civil engineering sector experienced the largest quarterly decrease at 11.8% in the seasonally adjusted volume index, while the non-residential sector experienced a 1.7% fall.

Building and Construction output down 2.4% in Quarter 1 2022https://t.co/SU8nJgdx5m #CSOIreland #Ireland #Housing #HousingConstruction #HouseBuilding #NewDwellings #IrishBusiness #BusinessStatistics #BusinessNews pic.twitter.com/gjM3KeGTZX

— Central Statistics Office Ireland (@CSOIreland) June 1, 2022

 

Overall, there was a 2.2% quarterly decline in the volume of production in all sectors of building and construction, while on an annual basis a 36.5% increase was recorded.

Sorcha O'Callaghan, statistician in the CSO business statistics division, said: "The volume of production in construction decreased by 2.4% in quarter 1 2022 compared with quarter 4 2021 on a seasonally adjusted basis. On an annual basis, volume increased by 23.0% in quarter 1 2022. 

"Non-essential construction sites were closed in early quarter 1 2021 and reopened in a phased manner in quarter 2 2021. This should be kept in mind while interpreting the annual sectoral changes," she added.

The construction industry has sought to combat delays caused by the Covid-19 pandemic however, rising costs and supply chain issues have resulted in issues for many construction companies.

Most recent figures from the CSO show an increase of more than 20% in the price of structural steel between March and April this year.