The contraction in the country's construction market has slowed to its lowest rate since June 2007, suggesting a tentative recovery in the sector.
But, the construction activity fell again for the 39th month in a row in August, according to the latest Construction Purchasing Mangers index from Ulster Bank.
Irish building firms again cut staff numbers sharply last month. Job cuts have now been recorded in the sector in each of the past 40 months as key projects were finished and new work just rose slightly.
The index remained below the no-change mark of 50 in August. It showed a reading of 48.4, up from the figure of 45 in July with activity falling in all three of the sectors - residential, civil engineering and commercial.
The data reveals that civil engineering registered the fastest rate of contraction. Activity on residential projects fell for the 46th month in a row while the weakest fall was seen in commercial activity.
It also says that new orders rose for the second month in a row, but the rate of growth was only marginal as tenders remained difficult to win.
Input costs increased for the fourth consecutive month as suppliers raised charges. However, the rate of inflation was the weakest in the four-month period due to intense competition.
(BMcC/KMcA)
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