The rate of Irish construction output growth accelerated again in July, according to the latest Ulster Bank Construction Purchasing Managers’ Index (PMI).
Respondents say that demand has increased, while the construction industry is also enjoying a “substantial” rise in new orders, leading to more employment opportunities in the sector.
The growth in Irish construction output has been described as “very rapid” by the Chief Economist Republic of Ireland at Ulster Bank.
This is because the PMI hit 60.7 in July, up from what was already a significant rate of Irish construction output in June of 58.4.
It represents the 59th month in succession in which construction activity has been above 50.0, which represents neither positive nor negative output.
Respondents have attributed the housing sector performance to the accelerated rate of activity.
According to the figures from Markit, housing activity, which was already experiencing a strong output PMI of 60.4 in June, has accelerated even further and in July, this figure was 63.9.
The rate of commercial activity was not quite as strong and the rate of growth has eased slightly from 62.0 in June. However, at 60.9, the rate of Irish construction output is still rising at a fast pace.
In addition to these two, there was a return to form for civil engineering activity following two months of decline. At 53.7, the sector also enjoyed growth.
It is no surprise that the rate of output is at the level recorded in July when new orders continued to rise – the 61st straight month that this has happened.
The overall result is an improvement in construction confidence amongst businesses, with optimism high for the next 12 months.
Simon Berry at Ulster Bank, said: “Firms continue to benefit from sharp rises in incoming new business flows as they report ongoing improvement in client demand for their services.
“In turn, the buoyancy of activity and orders patterns continues to underpin strong demand for construction workers, with the pace of job creation remaining substantial in July.”