Construction activity continues to decline
Construction activity continued to decrease in May, according to the Ulster Bank Construction Purchasing Managers’ Index (PMI).
The overall index measuring activity across the construction sector stood at 40.0 for the month, Ulster Bank said today, compared to 42.5 in April. Activity has fallen continuously since June 2007.
New business and employment in the sector also contracted during the month, albeit at a decreased rate.
Meanwhile input costs in the sector increased for the first time in 21 months.
“The latest reading of the Ulster Bank Construction PMI confirms that the slump in construction activity continued last month." said Ulster Bank economist Simon Barry.
"Indeed, the May reading indicates that the recession in the beleaguered construction sector has now lasted for three full years, as the index level of 40 was the 36th consecutive reading below the 50 breakeven level."
"A fresh, additional challenge facing the sector picked up by last month’s survey was the first rise in input costs since August 2008, a development that partly reflects the euro’s fall on the currency markets in recent months."
