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Building activity in Ireland remained entirely flat last month, but construction companies shed staff after eight straight months of new job creation, purchasing manager’s index survey results from S&P Global showed on Monday.
The BNP Paribas Real Estate construction total activity index registered a neutral 50.0 points in August, up a notch from 49.9 in July, which had indicated marginal contraction.
New orders continue to increase last month, according to survey responses, but the pace was slower than the 29-month high reported in July.
What’s more, Irish construction companies reported a reduction in employment, ending an eight-month string of increases and the biggest cut in jobs in nearly three-and-a-half years.
‘Construction employment has been on an almost unbroken upward trend since Ireland‘s economy reopened after Covid,’ said John McCartney, head of Research at BNP Paribas Real Estate Ireland. ‘However, for only the second time in twenty months, hiring went into reverse in August.’
McCartney noted ‘there does not appear to be any lack of demand for builders’, so the survey results suggest the construction sector in Ireland may be facing labour constraints.
Survey respondents also reported a continued increase in input costs, both for materials and for sub-contractors.
The PMI is compiled by S&P Global from responses sent to a panel of 150 construction companies in Ireland. The responses were collected between August 12 and 29.
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