Irish Construction Activity Contracts Amid Adverse Weather Conditions

(RTTNews) - Ireland's construction sector logged a renewed downturn at the start of the year amid adverse weather conditions as storm 'Ecowyn' had a dampening impact on overall construction levels, survey results from S&P Global showed on Tuesday.

The headline BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index dropped to 48.2 in January from 51.6 in December. Any score below 50 indicates contraction in the sector.

Among three monitored categories, the growth in housing activity was solid in January, though the pace of expansion eased since December. On the other hand, a renewed fall was seen in commercial activity, and a sustained decline was evident in civil engineering works.

Stormy weather conditions caused a contraction in new orders, which was the first drop in three months. Purchasing activity also declined for the second successive month, and supply-side pressures persisted due to disruption from storm ecowyn along with staff shortages and stock issues at suppliers.

On the price front, input price inflation remained marked in January despite easing from the previous month.

On a positive note, employment grew for the fifth straight month, and confidence among constructors regarding the outlook for demand and activity remained strongly positive, reflecting optimism in the ability of firms to secure new business in the months ahead.