ACTIVITY AND new orders in the Irish construction sector fell again in March, with companies cutting purchasing and jobs as a result, according to the latest Ulster Bank Construction Purchasing Manag- ers’ Index.
Meanwhile, the rate of input-cost inflation in the sector accelerated further.
The seasonally adjusted index designed to track changes in total construction activity dropped to 46.1 in March, from 47.8 in the previous month. A reading below 50 indicates a decline in activity.
Simon Barry, chief economist at Ulster Bank in the Republic, said: “Irish construction sector activity declined for the 46th month in a row in March. The pace of decline in housing accelerated to its fastest since December of last year. Meanwhile, the rate of decrease in both commercial and civil engineering slowed a little.”
But the same survey in Northern Ireland suggests the business environment there improved slightly last month although local firms continued to lay off staff.
Although total business activity fell again during March, the rate of decline has slowed to its lowest level in 16 months.
Richard Ramsey, chief economist with Ulster Bank in Northern Ireland, said the latest market data showed that private sector activity could not keep falling indefinitely in the North. He said the slower rate of decline in overall local business activity was linked to a weaker decrease in new orders.
But he also warned that the latest economic research showed that activity levels fell across three of the four sectors monitored in the survey. “The latest survey for March signals that the period of contraction has at least for now come to an end.
“However, Northern Ireland firms continue to reduce their workforce numbers as they have done each month since March 2008,” Mr Ramsey added.
He said the North remained the only UK region not to report a rise in employee numbers.
The research indicates the manufacturing sector remained the best local performer, with firms reporting an increase in output and new orders last month. It also suggests there was an increase in job losses in the construction sector while the “squeeze” on profit margins intensified.
