Construction activity in Ireland continued to decline in June amid a fall in commercial property building, data published by S&P Global showed Monday.

The headline seasonally adjusted BNP Paribas Real Estate Ireland construction total activity index fell to 47.5 points in June from 49.8 in May. Falling further from the 50-point mark separating growth from contraction, it indicates the slowdown in construction activity accelerated.

‘Underlying data suggested that a renewed fall in commercial activity was a key factor behind the latest reduction in total activity. Work on commercial projects decreased sharply, ending a three month sequence of growth. A rapid fall in civil engineering activity was also recorded in June,’ S&P Global said.

The commercial activity index declined sharply to 43.3 points in June from 51.4 in May.

The housing activity index, however, improved to 52.4 points in June from 52.0 in May.

The new orders index declined to 51.8 points in June from 52.9 in May.

John McCartney, director & head of Research at BNP Paribas Real Estate Ireland said: ‘Commercial activity surged through the spring and early summer as builders pushed to get large office schemes in Dublin completed. But with campus-scale projects like Coopers Cross and Wilton Park now delivered, activity inevitably eased-back in June. Nonetheless, considerable office space remains under development and the commercial sector should remain relatively busy as this is run-out over the next 18-months.’

Looking ahead, he added: ‘However recent momentum, in conjunction with an upward trend in leading indicators such as commencements, new orders, employment and materials purchases all signal that the longer-term direction of travel remains positive.’

The PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies in Ireland. The responses were collected between June 12 and 27.

Copyright 2024 Alliance News Ltd. All Rights Reserved.