Construction sector reports modest growth

• Published date: 15 April 2024
• Author: LAURA SLATTERY
• Publication title: Irish Times (Dublin, Ireland)

Construction activity expanded in March for the first time in nine months, the latest index for the sector from BNP Paribas Real Estate Ireland indicates

The index reading of 51.6 was the first to exceed the 50 no-change mark since June 2023, with the expansion following eight consecutive months of contraction. Although modest, the rate of expansion was the most marked for almost two years.

Renewed expansions in activity were registered for housing and commercial activity, with the rise in work on residential projects the first in a year-and-a-half and most pronounced since May 2022. Commercial activity also rose solidly, ending a four-month sequence of decline.

Survey respondents indicated that activity had risen on the back of increases in new orders, which also returned to growth during March following eight months of reduction. The increase was again modest, but the sharpest for a year.

Rising workloads encouraged construction firms to increase their staffing levels again in March, extending the current sequence of job creation to four months. Companies often reported that they had taken on new staff on a full-time basis.

Meanwhile, the rate of input cost inflation quickened to a seven-month high, with higher transportation and labour costs adding to general inflationary pressures.

“In many ways, the...