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(Correcting the first sentence to ‘contracted in May’ instead of April) Activity in Ireland’s construction sector contracted in May despite growth in the commercial sub-sector, S&P Global reported on Tuesday. The AIB Ireland purchasing managers’ index fell to 49.2 in May, down from 52.4 in April. A reading above the 50.0 neutral mark indicates growth in business activity from the previous month, while a reading below signals a contraction. The latest reading slipped into contraction for the first time since February, as signs of softening market conditions and growing uncertainty around US trade policy brought about a drop in overall activity. John Fahey, AIB senior economist, said: ‘From a sectoral perspective, commercial activity was once again the best performing of the three sub-sectors. It registered growth for the fourth straight month in May and at a similar pace to April. ‘In contrast, residential construction activity contracted, albeit marginally, for the first time in nine months. Meanwhile, civil engineering was the weakest of the three sub-sectors, with activity contracting for the first time in three months.’ Despite declining activity, new orders increased for the fourth successive month, although the pace of growth hit a three-month low. ‘Firms in the construction sector continued to hold an optimistic view that activity levels would increase over the coming 12 months,’ Fahey added. ‘This outlook was underpinned by the prospect of new projects getting underway.’ S&P Global compiles the PMI figure each month using survey responses from a panel of around 150 construction companies. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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