Construction activity has grown for the sixth month in a row, according to the latest Ulster Bank Purchasing Managers' Index, which seasonally tracks changes in total construction activity in Ireland.

Factors such as Brexit, COVID-19, supply chain issues and driver shortages  have lengthened delivery times increased costs, the index shows.

Some 78% of respondents cited input price inflation leading to higher costs while new projects and staffing levels are showing a seventh month of expansion in a row.

And the industry is confident in its outlook as sentiment picks up, the index shows.

Activity

The Ulster Bank Construction PMI rose to 56.9 in October from 56.3 in September. Index readings above 50 signal an increase in activity on the previous month and readings below 50 signal a decrease.

Ulster Bank attributed overall activity expansion to an increase in commercial projects.

Housing activity growth fell back since May.

Construction firms also said that input price inflation hit a fresh record in October as the supply issues fed through to higher costs. Some 78% of respondents indicated that their input prices had increased over the month.

Today's index also reveals that building companies expanded both their staffing levels and input buying at marked rates.

Ulster Bank said the rate of job creation quickened slightly, with some firms reportedly taking on new apprentices. Although the rate of increase in purchasing activity eased to a six-month low, it remained strong in the context of historical data, the bank added.