Building on the post-lockdown bounce recorded in May, the June results of the Ulster Bank Construction PMI signal that Irish construction activity experienced another month of very rapid growth last month. Activity expanded at an exceptionally strong pace again in June as the headline PMI was at one of the highest levels in the survey’s history for the second consecutive month, albeit down marginally from May. Strong growth was recorded across all three sub sectors, though residential activity continues to experience particularly rapid growth, if a little less exceptionally rapid than the record snap-back pace signalled by the May results.
Strong momentum was also evident in new business flows, with the New Orders index posting another extremely high reading not far from May’s survey record high, while the robust pick-up in orders and activity is also underpinning further increases in staffing levels across the industry.
Employment rose for the third month running as respondents linked strong job gains to improving customer demand. While the signals of ongoing strength in activity are certainly encouraging, the rate of input cost inflation accelerated to a second consecutive record high as the June survey results highlight that the sector continues to face important supply-chain and cost challenges related to Brexit, covid and global supply and shipping problems.
