Construction Output in Ireland Sees Modest Growth in Q3 2024

Ireland's building and construction sector recorded a modest increase in output during the third quarter of 2024, according to the latest report from the Central Statistics Office (CSO).

Seasonally adjusted data show a 0.9% rise in the volume of production compared to the previous quarter. On an annual basis, the sector demonstrated stronger growth, with a 4.5% increase in production compared to Q3 2023.

Sectoral Breakdown

• Residential Building Decline: The residential construction sector faced a 4.1% decline compared to Q2 2024, reflecting ongoing challenges in housing supply and possibly tightening market conditions.
• Non-Residential Building Growth: In contrast, the non-residential sector, including commercial projects, showed resilience with a 0.9% increase in output.
• Civil Engineering Expansion: The civil engineering sector, which covers infrastructure projects such as roads and utilities, saw the highest quarterly growth at 2.4%.

Value Index Highlights

The seasonally adjusted value index for all building and construction activities also rose by 0.9% quarter-on-quarter and posted a notable 6.5% annual increase. These figures indicate that the sector continues to contribute positively to the broader economy, bolstered by infrastructure investments and non-residential construction.

Broader Economic Context

The construction sector's performance aligns with the preliminary national accounts for Q3 2024, which revealed a 2.0% rise in GDP during the same period. This growth has been attributed partly to robust activity in multinational sectors and public infrastructure development​

Despite the challenges faced in residential construction, the overall outlook for the building and construction industry remains cautiously optimistic. Continued investment in non-residential projects and civil engineering is expected to sustain growth in the coming quarters.