Irish construction shrank at the slowest pace in almost three years in June as the economy stabilised after the recession, according to an index that tracks the industry.
The Construction Purchasing Managers’ Index rose to 44.9 in June from 40 the previous month, Ulster Bank said in a monthly report released today.
The index has been below 50, which indicates contraction, for 37 months. New construction orders fell the least since August 2007, while builders remained “strongly optimistic” for the next year, Ulster Bank said.
The economy expanded in the first quarter for the first time in more than two years, boosted by exports.
Construction remained a drag on growth, shrinking 35 per cent from a year earlier.
An index of house building rose to 45.4 in June from 40 in May, today’s report showed. The gauge of commercial construction increased to 45.8 from 39.9, and the civil engineering index slipped to 38.4 from 40.1.