Contraction in the construction sector deepened through April, as the rate of decline in activity quickened to its sharpest since September 2012.
New orders, employment and purchasing activity all fell at stronger rates than in March, while the rate of input cost inflation eased for a second consecutive month, according to the Ulster Bank Construction Purchasing Managers’ Index.
The index track changes in total construction activity and is adjusted for seasonal factors. It fell to 41.9 in April, from 43.1 in March, pointing to the fastest reduction in construction activity in seven months.
“Overall activity levels will remain under pressure in the short term, though respondents continue to expect a rise in activity over the coming 12 months from current, extremely low levels,” said Simon Barry, chief economist Republic of Ireland at Ulster Bank.
Declining workloads led construction firms to reduce employment during April. Moreover, the rate of job cuts quickened for the second month, running to the sharpest in 2013 so far.
Business optimism weakened for the second successive month in April although, on balance, firms still forecast growth.