Slight contraction in construction activity in September
Construction activity contracted slightly in September, the fourth time it has decreased in the last five months.
The BNP Paribas Real Estate (BNPPRE) Ireland Construction Total Activity Index fell to 49 from 50 a month earlier.
Activity in the housing sector resumed expanding following a tiny dip in the previous month.
It means that activity on residential projects has risen in six of the past seven months.
“House prices and, to a lesser extent, rents are rising strongly and the demand for residential property is well underpinned by population growth, the strong economy and Government schemes like Help to Buy which was extended again in the recent budget,” said John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland.
“Notwithstanding a continuous rise in costs since the spring of 2020, these factors have given builders confidence that they can deliver housing profitably, and residential commencements are strongly up.”
Mr McCartney added that this was in contrast to rising office vacancies which has caused new starts in the commercial sector to dry-up, dragging on overall activity.
As a result, commercial activity contracted during September after having grown in August.
New orders did grow however during the month with new business increasing for the seventh month running.
Staffing levels also rose as a result, as firms tried to ensure projects were completed on time.
There was also a slight rise in employment too, contrary to the drop the previous month.
Input costs climbed though driven by more expensive material and rising wages.
Article Source – Slight contraction in construction activity in September – RTE
