Ireland’s construction activity increased in December for the first time in eight months, purchasing managers’ index survey results from S&P Global showed on Monday, with job creation in the sector up as a result.

The BNP Paribas Real Estate Ireland construction total activity index increased to 51.6 points in December from 47.5 in November. This put it back above the neutral 50-point mark, suggesting growth for the first time since May.

‘Housing continued to lead the way, posting a fourth consecutive monthly expansion and the ninth seen across the year as a whole. The rate of growth was solid and sharper than that seen in November. Commercial activity returned to growth for the first time in four months. Meanwhile, civil engineering activity continued to fall, albeit to the least extent since last May,’ S&P Global said.

Survey respondents cited higher demand and an uptick in new orders during December. Construction companies were optimistic this would continue in 2025, with positive business sentiment at its highest in 34 months.

‘Rising current workloads and preparation for projects in 2025 led construction firms to take on extra staff in December, the fourth month running in which this has been the case. Moreover, the pace of job creation quickened to a nine-month high. Employment increased in each month of 2024 except for August,’ S&P Global reported.

BNP Paribas’s Director John McCartney commented: ‘Despite the ongoing rise in input costs, strong demand conditions – including demographic growth, falling mortgage rates, real earnings growth and strong Government support – have underpinned developers‘ confidence that residential schemes can be delivered profitably.’

The construction PMI is compiled by S&P Global from a panel of around 150 construction companies in Ireland. Responses were collected between December 5 and 20.

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