Homebuilding activity falls to weakest level since June

Developers claim reported decision-making among customers amid sensitivity around costs

Of the three construction sub-sectors, residential activity saw the fastest rate of contraction when compared to commercial construction activity and civil engineering. File photo

The residential construction sector saw an accelerated rate of contraction during October recording the “weakest level” of activity since June extending its period of decline for the sixth month straight, the latest AIB Purchasing Managers Index (PMI) shows.

For last month, the construction sector's PMI recorded a reading of 48.1 — up from the 43.7 recording in September but still well below the break-even level of 50. This shows that while there was a decline across the entire sector, the rate of decline eased markedly month-on-month amid a near-stabilisation of new orders.