Irish construction activity fell in February to its lowest level since Ulster Bank began surveying the industry in 2000.

According to new figures from the Ulster Bank Construction Purchasing Managers' Index (PMI) - the seasonally adjusted index designed to measure the overall performance of the construction economy - activity fell to 35 in February from 35.3.

An index reading of below 50 represents a decrease in activity. The PMI has posted below the 50 mark for nine months - signalling deteriorating conditions in the construction sector.

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Pat McArdle, Chief Economist at Ulster Bank said: "Although the overall construction index posted a new low in February, the fall was marginal as compared with January.

"In broad terms, the sector again contracted sharply but the rate of decline did not accelerate."

He explained that the decline in housing was less than in any month since last September. Adding: "Confidence, too, picked up."

Commercial activity, he said, was slightly less negative but there was a further marked deterioration in civil engineering.

Of all three construction areas covered by the survey, housing remained the worst performing as activity continued to fall at a substantial rate.

The contraction of civil engineering activity accelerated markedly and was the sharpest for four-and-a-half years. Commercial activity fell for the fourth month in a row and at a marked rate.

Results suggest that a general decline in demand, and increased competition for tenders led to the fall in new business.

(VB)