Construction sector now changing focus

The building industry grew again in January, but the latest figures indicate that the sector is undergoing a shift in focus. The Ulster Bank construction purchasing managers' index for January hit 54.8.

A recording of more than the index benchmark indicates growth on the previous month, while a reading of less than the watershed shows that activity is decreasing. But Ulster Bank chief economist, Pat McArdle, said that behind the figures, the industry's focus has shifted.

"Overall, construction continued to grow strongly," he said. "However, this concealed contrasting trends in the components. Commercial is now expanding very rapidly, civil has lost some of its momentum and housing contracted again in January."

Commercial building, that is offices, shops and similar developments, was the star performer in January. It posted a figure of 58.8, its strongest growth for 11 months. The December reading was 57.5. Civil engineering, that is, infrastructure and large projects, was next best at 53.2

Housing came in a 47.7, but the fall had been expected. The industry itself has predicted that the number of new homes built will not match the record levels of the last two years.