Residential Activity Continues to Increase at a Substantial Pace: PMI

The latest results of the Ulster Bank Construction PMI survey show that Irish construction firms experienced strong and faster, rates of expansion in December.  The headline PMI picked up for the second month in a row, with a very elevated reading of 58 marking a six-month high. 

Housing was again the strongest-performing sector in an encouraging sign that residential activity continues to increase at a substantial and accelerated pace.  But the improvement was broadly-based, with Commercial activity also rising at a rapid rate, while there was a welcome return to growth for Civil Engineering after six months of declining activity. 

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Respondents reported that employment growth remains solid, albeit that the pace of hiring eased to its slowest pace since March 2015.  A robust and strengthening pattern of new orders (which picked up to a four-month high) should underpin further gains in both staffing levels and wider activity in the months ahead. 

“Overall, the Construction PMI is the latest indicator to paint a decidedly upbeat picture of the economy’s performance at the end of last year.  It follows on from strong readings in a variety of other data points of late which have included the Services and Manufacturing PMIs, retail sales, housing supply and household income – all of which highlight that the Irish economy looks to be carrying considerable momentum into the early part of 2018.”