The end of the first quarter of 2013 saw an acceleration in the rate of decline in the Irish construction sector, with activity, new orders and employment all decreasing at faster rates.

Firms cut their purchasing activity at a substantial pace, but reduced stock holdings at suppliers led to the strongest lengthening of lead times in six-and-a-half years. The Ulster Bank Construction Purchasing Managers’ Index® (PMI®).

The reading signaled a marked reduction in construction activity, and the strongest seen so far in 2013. The latest decrease extended the current sequence of decline to 70 months.

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Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, said: "Activity in the construction sector continued to contract last month, according to the latest reading of the Ulster Bank Construction PMI. The pace of decline quickened to the fastest so far this year in March as conditions deteriorated across the Housing, Commercial and Civil Engineering sub-sectors.

"Previously encouraging signs on the trend in the New Orders index gave way to renewed weakness last month as survey respondents cited a lack of available projects and strong competition for tenders as key headwinds. In turn, diminished new business opportunities continue to exert downward pressure on staffing levels as the employment index fell in March following three months in a row over which the pace of decline eased."

(CD/H)