Construction activity in Ireland continued to expand in June, for the tenth consecutive month, it has been reported.

According to the latest Ulster Bank Construction Purchasing Managers' Index (PMI), the increase was supported by new order growth, which also led to an increase in employment and purchasing activity.

The Construction PMI, which is a seasonally adjusted index designed to track changes in total construction activity, recorded a level of 59.9 in June. This was a slight fall from 60.2 the previous month, but the report said that it still means a sharp expansion of activity in the sector.

It added that activity has continued to rise in the sector since September 2013.

Elsewhere, the report found that, in June, the residential sector was the best performing of the three monitored construction categories with activity on housing projects increasing at a "substantial" and "accelerated pace". Commercial activity also rose, but at a slower rate than the previous month.

-- Advertisement --

In contrast, a fall in civil engineering activity was recorded, and at a faster rate than the previous month.

New orders have continued to increase each month throughout the past year, the report added, with it being linked to improvements in the housing market and more new work from abroad. An increase in workloads subsequently led to an increase in employment. The increase in new work also saw firms increase their purchasing activity in June.

Discussing the findings, Simon Barry, Chief Economist, Republic of Ireland at Ulster Bank, said: "The results of the June survey of the Ulster Bank Construction PMI confirm that activity trends in Irish construction firms remained robust at the end of the second quarter.

"The headline PMI eased back a touch last month but still remains at a very elevated level, consistent with ongoing solid improvement in the sector, albeit from the very depressed levels reached in the downturn.

"The June survey affirmed that housing and commercial activity remain areas of particular strength as each sub-sector registered further rapid rises in activity."

He continued: "Looking ahead to the second half of the year, near-term prospects for the Irish construction sector continue to look favourable. Of particular note is the continued buoyancy of new orders as firms again reported a sharp increase in new business during June, marking the twelfth consecutive month of rising order levels.

"The strong trends in activity and new business continue to underpin job creation in the sector as staffing levels were raised for the tenth month in a row in June, albeit at a less rapid pace than in recent months."

(JP/MH)