FX.co ★ Irish Construction Activity Nears Stabilization

In July, Ireland's construction sector experienced only a slight contraction, coming close to stabilizing primarily due to a strong increase in housing activity, according to survey results released by S&P Global on Monday.

July saw the BNP Paribas Real Estate Ireland Construction Total Activity Index rise to 49.9 from 47.5 in June. A value below the neutral 50.0 mark indicates contraction, while a figure above 50 signifies sector expansion.

For the fifth consecutive month in July, housing activity increased, reaching its highest growth rate in three months. In contrast, commercial activity remained largely unchanged from June.

New orders surged at their fastest rate since February 2022. As a result, firms continued to expand their workforce for the eighth month in a row, although the rate of job creation was only minimal.

In response to the rising new orders, construction companies boosted their purchasing activity at the fastest pace seen in 28 months.

Regarding prices, input price inflation stayed high and above the average for the series, despite a slight easing since June.