Irish Construction Industry 'Past The Worst', Says UB

A leading bank has suggested the Irish building sector could be "past the worst" of the continued downturn.

According to the Ulster Bank, the decline in commercial activity "bottomed out" last month.

In its latest Construction Purchasing Managers Index, the bank also said the rate of employment losses in the sector had leveled off in April.

The seasonally adjusted index - which is designed to measure the overall performance of the construction industry - rose to 32.9 in April from 28.1 in March.


However, it still remained below the 50 mark which divides expansion from contraction.

Housing sector activity performed worst out of the three listed categories.

However, figures rose from 26.7 in March to 30.9 in April.

Ulster Bank economists said the housing index is now back at late-2007 levels.

The index also recorded an easing in the pace of decline of civil engineering projects last month.

According to the report the decline in commercial activity appears to have bottomed out.

Describing this as a "welcome positive", the Ulster Bank did predict activity will remain subdued for the foreseeable future.

"As early signs of stabilisation, albeit tentative, become evident abroad, the Irish construction sector may be past the worst," said Ulster Bank's Lynsey Clemenger.

"Nevertheless, it will be some time before activity ceases to contract and the employment situation improves," she added.

(PR/JM)