Construction activity weakened again in July
A report shows that activity in the construction sector fell for the third month in a row in July, led by the housing and civil-engineering sectors.
The AIB Ireland Construction PMI (purchasing managers’ index) recorded 47.1 – down from 48.6 in June and the lowest figure for 18 months. Any figure below 50 means that activity weakened.
While new orders increased, the rise was the lowest in five months, amid some reports of customers delaying decision-making due to economic uncertainty.
Business confidence, meanwhile, dropped to the lowest since November 2022, while the prices for raw materials rose at a faster rate than in June.
Commercial growth
Despite the uncertainty, construction firms increased employment levels for the fifth month in a row.
A breakdown showed that only the commercial sector (51.6) recorded growth during July, as activity in housing (44.7) and civil engineering (42.2) fell sharply.
John Fahey (AIB senior economist) said that a “subdued” performance by the sector in May and June had carried over into the start of the third quarter of 2025.
He pointed out that the fall in residential construction activity was the third monthly drop in a row.