The contraction in Irish construction industry decelerated thanks to a sound rise in new orders, survey results published by S&P Global showed on Monday.

The headline seasonally adjusted BNP Paribas Real Estate Ireland construction total activity index posted at 49.9 points in July. The reading was up from 47.5 in June and signalled a near-stabilisation of activity.

Housing activity increased for the fifth consecutive month, and at a solid pace that was the fastest since April, S&P said. The housing activity index rose to 53.2 points in July from 52.4 in June.

Meanwhile, the commercial activity index stood at 49.9 points, the same as the overall index and near the neutral 50-point mark separating growth from contraction. This was much better than 43.3 points in June, which had signalled a sharp contraction.

The index for new orders increased to 54.9 points in July, the best expansion since February 2022, from 51.8 in June.

John McCartney, director & head of Research at BNP Paribas Real Estate Ireland said: ‘Commencements have picked-up sharply in recent months and the increased activity indicated by the PMI points to stronger output ahead – although it may be 2025 before the recent surge in early-stage construction yields a material uplift in completions.’

The Irish construction PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 150 construction companies in Ireland. Survey responses were collected between July 11 and 30.

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