The rate of decline in the Irish construction sector eased in January according to the Ulster Bank Construction PMI Index.

Anecdotal evidence suggested that this partly reflected the end of the severe weather conditions seen in December and associated repair work, with activity, new orders and employment all continuing to decrease during the month.

The Ulster Bank Construction Purchasing Managers' Index – a seasonally adjusted index designed to track changes in total construction activity – remained below the 50.0 no-change mark in January, posting 45.3.

However, this was higher than the reading of 40.6 seen in December, pointing to a marked slowdown in the rate of contraction. A number of respondents indicated that falling new orders had led to the decline.

Ulster Bank chief executive Simon Barry, said the PMI is still below the breakeven level of 50, pointing to a sector that is "mired in recession."

"The PMI indicates that Irish construction activity has declined in each month since June 2007," he said.

The civil engineering sector continued to be the worst-performing of the three monitored categories, as the rate of contraction remained substantial. Commercial activity fell at a marked, albeit reduced rate, while housing activity decreased at the second-slowest pace since February 2007.