The growth in the Irish construction sector accelerated moderately in March, after easing in the previous four months, survey figures from Markit Economics showed Monday.
The Ulster Bank Construction Purchasing Managers' Index rose to 52.9 in March from 52.0 in February. Any reading above 50 indicates expansion in the sector. But the rate of expansion remained much weaker than seen during 2014.
Among the three sub categories of construction, commercial activity increased at a sharper pace in March and housing activity rose marginally. Meanwhile, civil engineering activity decreased for the second consecutive month, and at a faster pace.
New orders increased at a solid pace in March, and faster than seen in February, underpinned by an improvement in market conditions.
Construction companies raised their staffing level in March, in line with higher new business. Employment level rose for the nineteenth successive month, but the rate of job creation eased to the weakest since December 2013.
On the price front, the rate of input price inflation accelerated for the second month in row and it was the sharpest since 2007. According to respondents, a depreciation of the euro, mainly with regards to sterling, had led to increases in the cost of imported items.
"Overall, following the sharp weakening in the pace of construction activity recorded in January and February, the modest improvement in the March PMI is a welcome sign that the sector's growth rate steadied at the end of the first quarter," Simon Barry, a chief economist Republic of Ireland at Ulster Bank said.
"Nevertheless, it remains the case that the rate of expansion in March was a good deal weaker than that seen last year, consistent with a notable loss of momentum in the sector's recovery so far this year relative to the very strong growth recorded in 2014."
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