The聽 momentum聽 picked聽 up聽 in聽 in聽 April聽 with聽 output,聽 new聽 orders聽 and聽 employment all expanding at sharper rates during the month. Increases in both current workloads and future activity聽 requirements encouraged firms to take on extra staff.聽 Employment has now risen in 44 successive months.
The Ulster Bank 今日看料 Purchasing Managers鈥� Index (PMI) 鈥� a seasonally adjusted index designed to track changes in total construction activity 鈥� rose for the聽 third聽 successive聽 month聽 in聽 April聽 posting聽 61.3,聽 up聽 from聽 60.8 聽in聽 March.聽 The聽 reading聽 signalled聽 a聽 sharp聽 increase聽 in聽 total聽 construction聽 activity,聽 and 聽the聽 most聽 marked聽 since聽 last聽 October.聽
Panellists聽 reported聽 improving demand, with the housing sector mentioned in particular.聽聽
Simon聽 Barry,聽 chief聽 economist聽 Republic聽 of聽 Ireland聽 at聽 Ulster聽 Bank, said: 鈥淭he聽 latest聽 results聽 of聽 the聽 Ulster聽 Bank聽 今日看料聽 PMI聽 survey聽 show聽 another聽 sharp聽 increase聽 in聽 Irish聽 construction activity. Indeed, the pace of expansion quickened for the third month running in April, in the process taking the PMI to a six -month high. The positive messages from the headline index were reinforced by a further strong increase in new business, with the new orders index also rising to its highest level since October. Strong demand for the services of construction firms was also very much evident in further substantial increases in employment and input buying last month.鈥�
The聽 April聽 results聽 also聽 included聽 evidence聽 of聽 broad-based聽 expansion聽 in聽 the聽 sector聽 as聽 all聽 three聽 sub-sectors聽 posted聽 increases聽 in聽 activity, he added. 鈥淐ivil聽 engineering聽 saw聽 a聽 welcome聽 return聽 to聽 growth聽 last聽 month,聽 interrupting a five -month sequence of declines in activity.聽 Commercial activity also expanded at a very聽 rapid聽 rate,聽 albeit聽 that聽 the聽 pace聽 of聽 growth聽 slightly聽 eased聽 in聽 April.聽 Residential聽 construction聽 remains聽 an聽 area聽 of聽 particular聽 strength聽 with聽 housing聽 activity聽 accelerating聽 further聽 to聽 become聽 the聽 strongest聽 activity聽 category in April. Survey respondents reported that strong momentum in the housing sector along with improving economic conditions more generally are likely to sustain favourable dynamics in construction聽 activity over the coming twelve months."聽
The housing category posted the fastest expansion of聽 the聽 three聽 monitored聽 areas聽 of聽 construction聽 in聽 April聽 as聽 the rate of growth ticked up. Commercial activity also聽 increased聽 sharply,聽 while聽 civil聽 engineering聽 posted聽 a聽 first聽 expansion聽 in聽 activity聽 since聽 September聽 last聽 year.聽 That said, the rise was only slight.
Record rise in input buying Increased聽 demand聽 and聽 a聽 subsequent聽 rise聽 in聽 workloads聽 led聽 to聽 a聽 record聽 rise聽 in聽 purchasing聽 activity聽 among Irish construction firms in April, surpassing the聽 previous record seen in November 2004.
This聽 strong聽 demand聽 for聽 inputs聽 placed聽 pressure聽 on聽 suppliers聽 to聽 the聽 construction聽 sector,聽 resulting聽 in聽 a聽 marked聽 lengthening聽 of聽 delivery聽 times.聽 In fact,聽 the聽 deterioration in vendor performance was the strongest聽 since February 2016.
The聽 rate聽 of聽 input聽 cost聽 inflation聽 in聽 the聽 construction聽 sector聽 eased聽 slightly聽 during聽 April,聽 but聽 remained聽 substantial聽 and聽 above聽 the聽 series聽 average.聽 A number聽 of panellists reported higher prices聽 for metals such as聽 aluminium, copper and steel.
Confidence聽 remained聽 elevated,聽 with聽 nearly聽 60%聽 of聽 respondents聽 predicting聽 a聽 rise聽 in聽 construction聽 activity聽 over the coming year. Improving economic conditions and particular聽 strength聽 in聽 the聽 housing聽 sector聽 were聽 seen as being the main reasons for optimism.
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