Construction activity rises sharply again as new orders surge

• Author: Laura Slattery
• Published date: 08 November 2021
• Publication title: Irish Times: Web Edition Articles (Dublin, Ireland)

The slight acceleration in growth reflected an improving picture for new orders, which was partly related to the ongoing release of pent-up demand for construction services following the COVID-19 pandemic.

As a result, the index ticked up to a reading of 56.9 last month, up from 56.3 in September and well above the 50 threshold that signals an increase in activity.

"Having eased over the summer months following the post-lockdown snap-back in activity in Q2, the headline PMI rose slightly last month, signalling a modest re-accelerate in the pace of overall construction activity growth at the beginning of the fourth quarter," said Simon Barry, Ulster Bank's chief economist for the Republic.

"Commercial activity was particularly strong in October as the pace of growth picked up markedly, while residential activity registered solid expansion last month, albeit at a reduced pace relative to September," he said.

Strong demand for construction services was evident in further gains for both new orders and employment, with new business and staffing levels recording a seventh consecutive month of expansion.

Headwind

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