Ireland's construction sector has witnessed its first expansion in eight months, primarily fueled by advances in housing and commercial activities, according to survey findings released by S&P Global on Monday.
The BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index climbed to 51.6 in December from 47.5 in November, signaling a sectoral expansion with scores above the neutral 50 mark.
The survey monitored three key categories: housing activity, which experienced its fourth consecutive month of growth at a pronounced and accelerated pace compared to November; commercial projects, which returned to growth after a four-month hiatus; and civil engineering, where activity declined at a reduced rate towards the year's end.
This uptick in overall activity was largely attributed to a strengthening demand environment, leading to a significant increase in new business for Irish constructors, marking the swiftest growth in five months.
Looking forward, there is sustained confidence among firms regarding continued growth in new orders in the coming months. Optimism reached a 34-month peak, with 41 percent of respondents maintaining a positive outlook.
Amid this atmosphere, companies boosted their staffing levels in December to manage rising workloads and to gear up for projects extending into 2025. This increase in employment was the most pronounced in nine months.
"Despite the persistent rise in input costs, robust demand conditions—such as demographic growth, declining mortgage rates, real earnings growth, and strong government support—have bolstered developers' confidence that residential projects can be profitably executed," stated John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland.
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