Rate of expansion in construction activity slowed in June

In June, the rate of expansion in construction activity slowed in Ireland. The civil engineering division had a slight decrease while the housing and commercial divisions remained strong.

The latest Ulster Bank Construction Purchasing Managers’ Index (PMI) showed construction activity went from 63.6 percent in May down to 58.2 percent in June. However, if it is above 50 percent then that means the sector is growing.

Housing activity sector of the index went from 69.2 percent in May to 59.5 percent in June. Commercial activity reads at 60.8 percent in June from 65.2 percent in May. Civil engineering dropping from 51.8 percent in May to 48.4 percent in June.

Despite the sector growing, it still has not hit the target level of 25,000 new housing units every year, according to the Economic and Social Research Institute. Last year, the Department of Housing estimated a total of 15,000 homes were built.

Even though it has not hit its target level, Ireland’s construction activity has been growing since September 2013. This is because the Dublin office construction and recently, the rising home completions.

Ireland can expect some delays in the housing market with shortages of building materials, especially timber.

Despite the decrease in construction activity, Ireland still sees a healthy growth in the housing and commercial divisions. Especially with almost a 4 year consecutive growth month in Ireland, this should not be too much of a concern yet.

In reference to Pace of growth in Irish construction sector slowed in June, survey finds by Joe Brennan in the Irish Times on 10 July 2017.

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