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Ireland’s construction activity swung into decline in May, survey results from S&P Global showed on Monday.
The headline seasonally adjusted BNP Paribas Real Estate Ireland construction total activity index edged down to 49.8 points in May from 53.2 in April. Falling below the neutral 50-point mark, the score indicates activity declined.
Further, the housing activity index contracted to 52.0 points in May from 53.4 in April, indicating slowed growth.
The commercial activity index fell to 51.4 points in May from 54.6 in April. The new orders index declined to 52.9 points in May from 53.9 in April.
‘Despite the pause in growth seen for total construction activity, work on housing and commercial projects continued to increase in May. In both cases, activity rose for the third month running, but at softer rates than in April. New orders continued to rise in May as firms again saw new business come in during the month. The latest expansion was the third in as many months, albeit slower than in April,’ S&P Global said.
John McCartney, head of Research at BNP Paribas Real Estate Ireland commented: ‘News-flow from the construction sector remained positive in May with continued increases in activity across the key residential and commercial segments. The former is no surprise even looking through disruption which may have been caused by the development contributions waiver deadline in April, housing commencements have been on a sustained upward trend since October 2022. On the commercial side, activity has been driven by office construction in Dublin where more space was delivered in Q1 than in the entire of 2023.’
Last week, S&P Global data showed growth in the services sector of Ireland accelerated quickly last month, providing the highlight to an overall improved picture of the republic’s private sector.
The AIB Ireland services PMI business activity index rose to 55.0 points in May from 53.3 in April. That lifted the composite PMI output index to 52.5 points from 50.4. The other component of the composite index, the manufacturing PMI, improved to 49.8 points in May from 47.6 in April.
The construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies in Ireland. Survey responses are collected in the second half of each month.
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