Rate of decline in building slows in March

THE BUILDING industry’s decline continued last month, although the slump did show some signs of easing, according to a survey that will be published today.

The Ulster Bank Construction Purchasing Managers’ Index (PMI) shows that overall activity in the industry hit 42.3 in March, from 40.4 in February.

Any rating below the benchmark of 50 indicates activity has slowed on the previous month, while any reading above this number indicates it has grown.

The fact that the March reading is higher than February’s means that the rate at which the industry is contracting has slowed.

However, Simon Barry, the bank’s chief economist, said yesterday the industry has been in decline for close to three years.

“The latest reading in the Ulster Bank Construction PMI indicates that activity in the Irish construction sector contracted for the 34th consecutive month – a statistic that highlights what a torrid time it has been having for most of the last three years,” he said.

“The March reading of the headline PMI at 42.3 was still well below the expansion threshold of 50, thus clearly pointing to ongoing falls in activity.

“However, the PMI managed to rise for the third month in a row and the March level is the highest reading seen in almost two-and-a- half years.”

Mr Barry added while building was lagging manufacturing and services, which have stabilised, the rate at which it is contracting appears to be easing back.

Meanwhile, the Construction Industry Federation (CIF) has launched a new scheme to help its members pursue customers who have not paid their bills.

The federation’s payments recovery assistance programme involves getting advice from its own in-house experts and then from lawyers.

“Ultimately, the entire process will bring you to a point where you can make an informed decision to pursue the money or not,” the CIF’s head of contracts, Martin Lang, said yesterday.