Irish Construction Downturn Eases In June: Ulster Bank

(RTTNews) - The Irish construction sector contracted in June at the weakest pace in four months, reflecting slower declines in both housing and commercial activity, data from a survey by Markit Economics and Ulster Bank showed Monday.

The seasonally adjusted purchasing managers' index (PMI) for the construction sector moved up to 43.4 in June from 42 in May, and reached the highest level since February. Index readings above 50 signal increase in activity, while those below 50 indicate decrease.

The major sub-divisions logged weaker contraction in activity, with residential projects witnessing the slowest reduction. Meanwhile, civil engineering output decreased at the fastest pace since December 2010.

Overall, new business received by construction firms dropped at a notably slower rate in June than in the previous month. However, firms lowered their employment levels at the sharpest rate so far this year, in line with the reduction in workload.

At the same time, input price inflation faced by construction firms eased for the fourth consecutive month in June to the lowest level in the current 11-month sequence of inflation, data showed.