Ireland’s construction activity deteriorated further in November, as demand weakened amid on-going inflationary pressures, survey results from S&P Global showed on Monday.
The headline BNP Paribas Real Estate Ireland construction Purchasing Managers’ Index dropped to 46.8 in November from 47.4 in the previous month.
Any reading below 50 indicates contraction.
The overall decline in November was largely attributed to a continued reduction in new orders amid a market slowdown. New business fell at the fastest pace in three months.
Within the three sectors, housing activity declined at an accelerated pace in November, and the civil engineering segment also logged a sharp fall since October. Meanwhile, the rate of contraction in commercial activity eased markedly.
On the price front, input price inflation quickened in November, linked to higher costs for energy and fuel prices.
As a result, companies reduced their purchasing activity sharply, while employment was broadly unchanged from last month.
Firms were optimistic that activity will increase over the next twelve months, with some expecting housing demand to support growth.