Construction activity increased again in June – Ulster Bank PMI
Construction activity increased for the second month in a row following the full reopening of the sector, and at one of the strongest rates since the survey began.
The Ulster Bank Construction Purchasing Managers’ Index remained well above the 50 no-change mark in June, posting 65 following a reading of 66.4 in May.
Index readings above 50 signal an increase in activity on the previous month and readings below 50 signal a decrease.
“Building on the post-lockdown bounce recorded in May, the June results of the Ulster Bank Construction PMI signal that Irish construction activity experienced another month of very rapid growth last month,” Simon Barry, chief economist at Ulster Bank said.
Strong growth was recorded across all three sub sectors, though residential activity continues to experience particularly rapid growth, if a little less exceptionally rapid than the record snap-back pace signalled by the May results.
Housing continued to lead the expansion, while rates of growth in commercial and civil engineering activity accelerated marginally.
“Strong momentum was also evident in new business flows, with the New Orders index posting another extremely high reading not far from May’s survey record high, while the robust pick-up in orders and activity is also underpinning further increases in staffing levels across the industry,” he said.
Employment rose for the third month running as respondents linked strong job gains to improving customer demand.
“While the signals of ongoing strength in activity are certainly encouraging, the rate of input cost inflation accelerated to a second consecutive record high as the June survey results highlight that the sector continues to face important supply-chain and cost challenges related to Brexit, Covid and global supply and shipping problems,” Simon Barry added.