The ongoing contraction in Irish construction activity slowed in February, data published by S&P Global showed Monday.
The headline seasonally adjusted BNP Paribas real estate Ireland construction total activity index edged up to 47.4 in February from 45.9 in January. Getting closer to the 50-mark separating growth from contraction, it indicates that the activity contraction decelerated.
‘Although continuing to signal falling construction output, the rate of decline implied by the latest data was the least marked in five months,’ S&P Global noted.
It added: ‘Hopes that new orders will return to growth over the coming year supported a jump in confidence regarding the 12-month outlook for construction activity. Sentiment hit a two-year high as close to 40% of respondents predicted an increase.
‘Signs of improvement in demand and confidence in the outlook for the coming year supported continued improvements in workforce numbers in February.’
Meanwhile, other construction indices ticked up as well. Housing activity edged to a near-neutral 49.8 in February from 48.2 in January; commercial activity ticked up to 47.2 from 44.7; and future activity improved to 64.9 from 58.6.
‘At this early stage it looks like the rapid growth in housing completions over recent years could stall a bit in 2024,’ said John McCartney, director & head of research at BNP Paribas
Real Estate Ireland. ‘Nonetheless, the continued upward trend in starts bodes well for residential supply over the medium term, and this is reflected in sustained construction sector hiring and the most positive sentiment reading for two years.’
The BNP Paribas Real Estate Ireland Construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies. The panel is stratified by company workforce size, based on contributions to GDP.
Survey responses are collected in the second half of each month, in this case between 12 and 28 February, and indicate the direction of change compared to the previous month.
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