‘Muted’ start to 2026 for construction sector
A survey of the construction sector has found that activity remained muted at the start of this year, despite an increase in new orders.
The AIB Ireland Construction PMI (purchasing managers’ index) recorded 48.6 in January – up slightly from December’s 48.4. Any figure below 50 means that activity declined.
AIB said that total activity had now decreased in each of the past nine months, adding that some firms had reported that project start dates had been put back, limiting activity.
Commercial was the best-performing category, recording 49 in January, representing only a slight reduction in activity. There were bigger falls in housing and civil engineering, which came in at 46.9 and 44.2, respectively.
Optimism
While overall activity fell, new business expanded for the second month running, and at the fastest pace since March last year.
AIB senior economist John Fahey said that there was also a further increase in staffing levels in the sector, with the current period of job creation extending to three months.
“In a further positive development, construction firms’ degree of optimism regarding increasing activity levels over the coming 12 months improved for a second consecutive month and is now at its highest reading in a year,” he added.
Firms, however, also posted a marked rise in input costs, and one that was faster than that seen in December.
Copper was a key item mentioned as having risen in price over the month.