Construction sector grew again in March
Growth in activity in the construction sector accelerated last month, led by an increase in new orders, according to the latest survey of the sector.
The AIB Ireland Construction PMI recorded 53.2 – up from 52.1 in February. Any figure above 50 represents growth.
March was the second successive month of growth and the monthly figure was the highest for a year.
Firms add staff
Growth picked up pace in the housing (52.7) and commercial (54.9) sectors. While civil engineering (48.9) continued to lag, the drop was the smallest in 11 months.
Sustained increases in workloads and the start of new projects led construction firms to expand both their staffing levels and purchasing activity in March.
Workforce numbers increased for the fifth consecutive month, while the rate of job creation was the fastest in 15 months. Firms also increased their use of sub-contractors to a greater extent than in February.
Cost inflation
Firms faced the highest rate of cost inflation since December 2022, however, due to the impact of higher fuel costs.
“Irish construction firms continued to convey an optimistic view on the prospect for increasing activity levels over the coming 12 months,” said John Fahey (AIB senior economist).
“However, the uncertainty arising from the conflict in the Middle East saw confidence levels fall to a four-month low," he added.