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Ireland’s construction sector contracted sharply in September at the fastest rate since December 2022, S&P Global reported Tuesday. The AIB Ireland construction purchasing managers’ index fell to 43.7 in September, down from 45.9 in August. It is the fifth consecutive month that the index fell short of the neutral mark. A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction. All three sub-sectors recorded a decline in September, comparable to last month. ‘Residential construction activity contracted for a fifth successive month, albeit at a marginally slower pace compared to the previous month. Meanwhile, the commercial sector remained in contraction territory for a second month running, with the pace of decline accelerating. Civil engineering continued to report the sharpest falls in activity, with the pace of contraction at its most pronounced since October 2022,’ said AIB Senior Economist John Fahey. Purchasing activity slowed at a solid pace as new orders declined for the second straight month. Meanwhile, input costs rose at the slowest pace since November last year. ‘Not surprisingly, against this backdrop of falling activity levels, there was a reduction in employment in the sector, ending a six-month period of jobs growth. However, despite this challenging operating environment, firms retained an optimistic view that activity levels will increase over the coming 12 months,’ said Fahey. S&P Global compiles the PMI 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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