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Total construction activity falls for second month in a row

By July 8, 2024No Comments

Total construction activity fell for the second month in a row in June, new data shows.

BNP Paribas Real Estate Total Construction PMI index fell to 47.5, from 49.8 in May.

The report suggests that a fall in commercial activity was a key factor behind the latest reduction in total activity.

“Commercial activity surged through the spring and early summer as builders pushed to get large office schemes in Dublin completed,” said John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland.

“But with campus-scale projects like Coopers Cross and Wilton Park now delivered, activity inevitably eased-back in June,” he added.

Nonetheless, Mr McCartney said considerable office space remains under development.

“The commercial sector should remain relatively busy as this is run-out over the next 18- months,” he said.

On a more positive note, housing activity continued to rise in June.

“The Government has been under pressure for some time to increase its home-building targets and its stated intention to revise these to around 50,000 units per annum has underpinned residential builders’ confidence,” Mr McCartney said.

Residential activity expanded for the fourth month in a row in June, but Mr McCartney said this may not result in increased housing completions this year.

However, he said leading indicators remain positive.

“Recent momentum, in conjunction with an upward trend in leading indicators such as commencements, new orders, employment and materials purchases all signal that the longer-term direction of travel remains positive,” he said.

Today’s report shows that new business expanded for the fourth month in a row.

Some firms indicated that they had received repeat orders from existing clients.

Alongside rising charges by suppliers, the report states that geopolitical issues were partly behind higher input prices.

The rate of input cost inflation quickened to a 14-month high and was above the pre-pandemic average.

Article Source – Total construction activity falls for second month in a row – RTE

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