Growth in building activity slows, but housing steady

Updated / Monday, 8 Jul 2019 09:42

The housing sector is performing strongly with activity holding steady at solid rates, according to the report

Growth in activity in the construction sector slowed to an eight month low at the end of the first half of the year.

This is according to Ulster Bank's latest Purchasing Managers' Index for June.

However, the industry is still in expansion mode. The slowdown appears to have been mainly accounted for by a cooling off in commercial and civil engineering projects.

The housing sector is performing strongly with activity holding steady at 'solid rates', according to the report.

This is despite some reports of developers slowing down or halting projects because of signs of house prices falling.

There's no sign of that in this report. For the sixth month in a row, the housing sub-category recorded the fastest rise in activity of the three monitored sectors in June. 

There was a pick up in the rate of job creation in the month too, with the employment index bouncing back from May's four year low.

"The demand for construction workers continues to be underpinned by new business which continued to rise solidly in June, with respondents citing greater residential activity and availability of new projects as important sources of support for new orders," Simon Barry, Chief Economist Republic of Ireland at Ulster Bank said.

"Furthermore, firms themselves remain optimistic about the coming year," he added.