FX.co ★ Ireland Construction Sector Slips Into Contraction

Ireland's construction sector dipped into contraction territory in May, putting an end to a two-month period of growth, according to survey results released by S&P Global on Monday.

The BNP Paribas Real Estate Ireland Construction Total Activity Index declined to 49.8 in May from 53.2 in April. An index score below the neutral 50.0 threshold signifies a contraction in the sector.

The survey indicated that work on housing and commercial projects continued to grow in May, marking the third consecutive month of increased activity, although at a slower pace compared to April. New orders saw a continued rise in May. Employment numbers increased for the sixth consecutive month, but the pace of job creation slowed to the weakest rate in the current growth sequence.

Input costs rose in May due to higher material prices; however, the rate of inflation decelerated to a four-month low. Meanwhile, companies reported an improvement in supplier performance for the first time in ten months.

Lead times for the delivery of inputs shortened moderately, marking the most significant improvement since October 2010.