Construction activity suffers biggest drop in a year

Construction activity suffers biggest drop in a year

Construction activity fell in August at the fastest pace since September 2011, according to the latest Ulster Bank construction purchasing managers’ index.

Sentiment has dropped to the weakest level since December 2010.

The index posted 40.7 in August, down from 42.2 the previous month.

Index readings below 50 indicate a decrease in activity, while readings above 50 indicate an increase.

John Fahey, economist with Ulster Bank, said that from a sectoral perspective the weakness recorded in August was broad-based, with all three of the main sub-sectors experiencing declining activity.

Civil engineering activity scored 35.6, down from 37.1.

Housing was 39.1, down from 43.2, and commercial was 42.4, down from 42.7.

“Given the persistent falls in activity levels, the construction sector continues to shed jobs, albeit at a slightly slower pace.”

In relation to outlook, Mr Fahey described the near-term prospects as gloomy.

Source: Irish Times.

There is 1 comment for this article
  1. Paddy at 10:05 pm

    NAMA want expensive land, as they own lots of it which they plan to sell for as much as possible. But what the construction sector needs is low cost sites. Looks like NAMA is getting its way, regardles of the cost to the costruction sector.

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