Drop in construction softens in January as demand for new homes continues

Construction employment increased for the second month in a row, and at a solid pace that was the fastest in almost a year

The January contraction in construction activity recorded in the BNP Paribas Real Estate Ireland Construction Index is the smallest fall since October. Stock picture: Gareth Fuller/PA

New home building continues to outperform other sectors as the latest construction industry survey shows another contraction in the industry.

The BNP Paribas Real Estate Ireland Construction Index for January recorded the seventh consecutive monthly fall in construction activity, but January saw the softest contraction since October.