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Irish Construction Sector Activity Continues To Fall In October
11/9/2009 3:54 AM ET
(RTTNews) -
The Republic of Ireland's Ulster Bank Purchasing Managers' Index or PMI for the construction sector increased to a seasonally adjusted 34.5 in October from 34.2 in September, a report from Markit Economics revealed on Monday. A reading above 50 indicates expansion, while one below 50 suggests contraction. Activity in the construction sector has declined in each month since June 2007.
All three sub-sectors recorded sharp decline in activity in October. The index measuring housing activity climbed to 35.6 in October from 33.8 in the previous month. The commercial activity index slid to 34.5 from 34.9, while the civil engineering activity index rose to 32.2 from 31.3.
"The October reading of the Ulster Bank Construction PMI confirms that conditions in the Irish construction sector remain highly challenging," said Simon Barry, Chief Republic of Ireland Economist at Ulster Bank. "The improving trend that had been evident earlier in the year looks to have stalled. This stands in contrast to the ongoing improvement which has been maintained in equivalent surveys of manufacturing and services."
New orders in construction firms dropped substantially, with respondents blaming fragile confidence among consumers. Employment levels declined at a marginally slower pace but remained sharp, with constructors still undertaking cost cutting measures.
Input prices in the construction sector fell at their slowest pace in a year in October. Meanwhile, the index measuring the level of optimism regarding future prospects for construction activity remained weak, with 31% of panelists expecting activity to fall as a result of the continued fragility of the wider economy.
by RTT Staff Writer
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