Growth聽 in new orders remained聽 sharp聽 and聽 companies聽 increased聽 both聽 their聽 purchasing聽 activity聽 and聽 staffing聽 levels聽 again.聽 Meanwhile,聽 the聽 rate聽 of 聽input聽 cost聽 inflation聽 eased聽 to聽 the聽 slowest聽 in聽 21聽聽 months.
The聽 Ulster聽 Bank聽 Construction聽 Purchasing聽 Managers鈥櫬� Index (PMI)聽 鈥撀� a聽 seasonally聽 adjusted聽 index聽 designed聽 to聽 track聽 changes聽 in聽 total聽 construction聽 activity聽 鈥� posted 62.3 in March, remaining well above the 50.0 no-change mark, despite dropping from the reading聽 of 68.8 seen in February.
Construction activity has now increased in each of the past 31 months, with聽 rising numbers of enquiries reported by respondents in March.
Simon聽 Barry,聽 chief聽 economist聽 Republic聽 of聽 Ireland聽 at聽 Ulster聽 Bank, said: 鈥淭he latest results of the Ulster Bank Construction PMI survey show that activity in Irish construction聽 continued to expand at a rapid rate in March, albeit that the pace of growth eased somewhat from the聽 record聽 levels聽 recorded聽 in聽 February. Some聽 pull -back聽 from聽 last聽 month鈥檚聽 all-time聽 survey聽 high聽 is聽 not聽 particularly surprising, and at 62.3, the headline PMI index continues to point to very strong expansion. It鈥檚 a similar story at the level of each of the major sub-sectors, with growth easing but remaining robust in the commercial, housing and civil engineering areas.
鈥淔irms聽 continue聽 to聽 report聽 solid聽 flows聽 of聽 new聽 business. In聽 turn,聽 greater聽 availability聽 of聽 tender聽 opportunities continues to underpin increases in staffing levels which have been on the rise for over聽 two and a half years now. And firms remain solidly optimis tic that activity will increase further over the聽 coming聽 year. Over聽 60%聽 of聽 firms聽 anticipate聽 further聽 improvement聽 over聽 the聽 next聽 twelve聽 months,聽 partly聽 reflecting positive expectations regarding the outlook for the wider Irish economy. 鈥�
Subcontractor usage聽 continued to expand, albeit to a聽 lesser extent than in the previous month. The rate of聽 decline聽 in subcontractor聽 availability聽 also聽 eased,聽 but聽 remained聽 sharp.聽 The rates charged聽 by聽 subcontractors increased markedly, and at a faster pace聽 than in February.
Suppliers鈥櫬� delivery聽 times聽 continued聽 to聽 lengthen聽 amid聽 signs聽 of聽 growing聽 capacity聽 pressures聽 on聽 vendors.聽
Construction聽 firms聽 remained聽 strongly聽 optimistic聽 that聽 activity will rise further over the coming year, despite聽 sentiment easing to a five-month low. Around 62% of respondents predicted a rise in activity over the next聽 12聽 months,聽 linked聽 to聽 positive聽 expectations聽 regarding聽 economic conditions.
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