The seasonally adjusted index designed to track changes in total construction activity rose to 65.7 in June from 63.3 the previous month.
Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, said: "The recovery in Irish construction gained further significant traction in June according to the latest results of the Ulster Bank Construction PMI survey.
"Building on the solid improvement registered in April and May, overall activity again accelerated sharply last month as the headline PMI rose to 65.7.
-- Advertisement --
"This is the second-highest reading in the survey’s fifteen-year history, with the pace of growth in June bettered only by the record rate of growth recorded in November 2004."
The growth was experienced across all sub-sectors; Housing Activity, Commercial Activity and Civil Engineering Activity.
Survey respondents attributed rising activity to an 'increased number of projects and improving confidence within the economy.'
The rate of growth in new business accelerated for the fourth successive month and was the sharpest since November 2014.
New orders have now risen on a monthly basis throughout the past two years.
Employment has risen due to growth in new orders and confidence that workloads will continue to increase through the second half of the year.
Sub-contractor usage rose at a sharper pace in June, contributing to a further decline in their availability.
Higher demand and lower supply of sub-contractors meant that they were able to raise their prices charged at the fastest pace in the year-to-date, despite a modest deterioration in the quality of their work.
(LM)
