The Ulster Bank Construction Purchasing Managers’ Index (PMI®) Report for August 2014 revealed that, following expansion during the month, activity in the Irish construction sector has now increased every month throughout the past year. The Ulster Bank Construction PMI® registered at 61.4 in August, representing a slight decrease from 62.6 recorded in July; however, the reading is still indicative of a strong increase in construction activity throughout the country. Overall growth was mainly attributed to an increase in new work and was supported by a rise in new orders.
“The August results of the Ulster Bank Construction PMI survey highlight that trends in the Irish construction sector continue to show strong improvement,” said Simon Barry, Chief Economist Republic of Ireland at Ulster Bank. “The headline PMI reading of 61.4 indicates that activity again rose at a rapid rate last month, albeit at a slightly slower pace than in July. The solid improvement continues to be underpinned by particular strength in both the housing and commercial arenas where activity trends are benefiting from substantial increases in new orders.
“In turn, the solid trends in new business are translating into higher staffing levels, with the employment index recording its twelfth consecutive month of expansion. Indeed, the headline PMI index itself has also now been in expansion territory for the past twelve months as the sector continues to pull away from the deep trough reached following the 2007 – 2013 downturn. Moreover, construction firms are confident that the sector’s recovery will remain on track in the coming year. Sentiment rose for the third month in a row in August, taking it to a near-record high, as respondents anticipate that further improvements in both the construction sector itself and the broader economy will result in further activity gains in the coming 12 months.”
Access the Ulster Bank Construction PMI® Report for August 2014 here.
Adapted from press release by Rosalie Starling
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