The overall level of construction orders in Ireland has continued to increase, according to the latest survey data from Standard & Poors.
May saw a slight drop in construction output from April, the BNP Paribas Real Estate Ireland Barometer showed. Its purchasing managers’ index reading of 49.8 represented a minuscule decline in activity overall compared with April’s 53.2, making this the first time in three months that activity was down. However, there was an overall increase in work on housing and commercial projects.
While such figures won’t exactly have dealers in diggers and other construction equipment popping champagne corks, the underlying data included some very positive features, with new orders and employment levels continuing to increase, while overall sentiment continued to be positive.
Commenting on the survey, BNP Ireland’s head of research John McCartney said: “News from the construction sector remained positive in May with continued increases in activity across the key residential and commercial segments.”
He noted that a particular hotspot of activity was commercial construction in Dublin, where more projects had been delivered in the first quarter of 2024 than in the whole of last year.
Moreover, Mr McCartney observed, the increases in orders and jobs are being aided by other favourable factors such as lower inflation and supply chain improvements, stating: “Supporting these trends, input costs inflation has stabilised and supply chain issues appear to be easing with lead-times shortening.”
Efforts to increase residential construction across Ireland may also be aided by renewed political efforts following the recent publication of the Housing Commission’s report in full by the government, with a key finding being that Ireland needs an additional 256,000 homes.
Housing minister Darragh O’Brien said 65 of the 78 recommendations in the report are already being implemented, while work continues on the wording of the upcoming referendum on the responsibility of the state to provide a right of access to housing to every citizen.
https://www.rte.ie/news/ireland/2024/0522/1450593-housing-commission/
