Irish Construction Activity Recovers In December

(RTTNews) - Ireland's construction sector expanded for the first time in eight months, driven by growth in the housing and commercial activities, survey results from S&P Global showed on Monday.

The headline BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index rose to 51.6 in December from 47.5 in November. A score above 50 indicates expansion in the sector.

Among three monitored categories, housing activity grew for the fourth successive month, and the rate of growth was solid and faster than in November. Commercial works returned to the growth zone for the first time in four months. On the other hand, civil engineering activity fell at a slower pace at the end of the year.

The survey revealed that the rise in total activity was mainly due to an improving demand environment. As a result, new business received by Irish constructors increased at the sharpest pace in five months.

Looking ahead, firms remained confident about further gains in new orders over the coming months. The corresponding sentiment rose to a 34-month high as 41 percent of respondents expressed an optimistic outlook.

Firms increased their workforce numbers further in December amid rising current workloads and preparation for projects in 2025. Moreover, the pace of job creation quickened to a nine-month high.

"Despite the ongoing rise in input costs, strong demand conditions - including demographic growth, falling mortgage rates, real earnings growth and strong Government support - have underpinned developers' confidence that residential schemes can be delivered profitably," John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland, said.