Builders hit by a 'plunge' in commercial activity while housing output also slows

Housing output continued to slow but at a softer pace than in November.

The survey also highlighted growth in employment in the industry last month, rose for the 11th time in 12 months in December, and reported optimism reached its highest level since last May. Pic: Eamonn Farrell/RollingNews.ie

Interest rates and high input costs continued to put pressure on the construction sector last month as builders reported a steep reduction in commercial activity in addition to slowing housing output, according to a leading survey.

The findings of the survey of purchasing managers who work in the building industry, as tracked by the BNP Paribas Real Estate index, showed a “continued plunge” in commercial activity, driving down the overall reading to 45.1. Anything below 50 is considered to be in contraction territory.