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The construction sector in Ireland improved a bit in January from December but remained in contraction for the fourth month in a row, according to purchasing managers’ index survey results released on Monday.
The headline seasonally adjusted BNP Paribas Real Estate construction total activity index rose to 47.7 points in January from 43.2 in December. Any reading below 50 points indicates reduction in activity, though January’s score was the best since the current downturn began in October, according to index compiler S&P Global.
Irish construction firms reported a struggle to find new orders, and the drop in demand led them to reduce their own input buying for the eighth month in a row. More positively, the outlook for activity in the coming 12 months improved to an 11-month high, the survey found.
‘This month’s PMI is distinctly more upbeat than those of recent months,’ said John McCartney, head of research at BNP Paribas Real Estate Ireland. ‘Although input costs are still rising, the rate of increase is at its slowest for two years. Meanwhile supply chain delays have eased somewhat, perhaps reflecting the reopening of the Chinese economy.’
The PMI was derived from the responses to a survey sent by S&P Global to 150 construction companies in Ireland. The results were compiled between January 12 and 30.
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