New figures show the impact of the COVID-19 pandemic on the construction industry, as site closures and restrictions led to a collapse in activity.

The Ulster Bank Construction Purchasing Managers’ Index (PMI), compiled by research group Markit, recorded 28.9 in March compared with 50.6 in February. This was the largest monthly drop in the survey’s 20-year history. Any figure below 50 means that activity fell.

Slump

Ulster Bank chief economist Simon Barry said the PMI had fallen to levels only previously seen at the height of the financial crisis.

A breakdown of the figures show that the slump was widespread, affecting all three main areas of the construction sector.

The housing index fell from 49.7 to 32.4, while commercial activity dropped from 52.1 to 28.2. The biggest decline came in civil engineering, with a figure of 25.2.

Mr Barry said other parts of the survey indicated that the construction sector would remain under significant pressure in the months ahead.

Cancelled

Orders for new work fell to the lowest level since 2009, as projects were cancelled and companies shut down.

Around 45% of those surveyed also anticipated a fall in activity over the coming year due to uncertainty about the duration of COVID-19 restrictions. This was also the gloomiest assessment since 2009.

There was also a sharp fall in employment the sector in March, following six and a half years of growth.