Building Activity Slowing At Record Pace

Construction activity has slowed for the third month in a row in January according to the Ulster Bank Construction Purchasing Managers Index.

The Index posted a reading of 35.3 last month, its lowest reading in the survey's history.

A reading of 50 marks the centre ground, dividing expansion (upwards of 50) in the sector from a decrease in activity (less than 50).

The index has now been below the 50 mark since June 2007.


For the second month in a row, activity declined in all three construction areas monitored by the survey - housing, commercial and civil engineering.

Again, housing was the worst performing of the three with a record low reading of 23.1. Commercial activity saw a sharp fall from 45.6 in December to 42.8, the steepest fall from July 2003, while civil engineering activity only moderately declined with a reading of 47.

New orders to building firms and employment in construction also witnessed a substantial fall.

Builder morale was recorded in the survey as at it's lowest since July 2003, with 36% believing that circumstances in the industry will deteriorate as the year progresses.

(VB/JM)