In a statement published today the BNP Paribas Real Estate Ireland Construction PMI concluded that
• Total construction activity rises for first time in eight months
• Business confidence highest in almost three years
• Rate of job creation accelerates
The BNP Paribas Real Estate Ireland Construction Purchasing Managers' Index (PMI) is a key economic indicator that measures the health of the construction sector in Ireland. It is compiled from monthly surveys of construction industry professionals, including project managers and procurement specialists, who report on various aspects of construction activity.
The headline seasonally adjusted BNP Paribas Real Estate Ireland Construction Total Activity Index rose above the critical 50.0 threshold in December, climbing to 51.6 from 47.5 in November. This marked the first expansion in total construction activity in eight months, signaling a modest recovery.
The uptick in activity was driven by growth in two of the three monitored categories. Housing continued to outperform, achieving its fourth consecutive monthly expansion and the ninth for the year. The growth rate in December was solid and sharper than in November. Commercial activity also returned to growth for the first time in four months, while civil engineering activity declined further, albeit at the slowest pace since May.
Survey respondents attributed the increase in total activity to improving demand conditions, which was also evident in the continued rise in new orders. December marked the ninth increase in new business over the past ten months, with the latest expansion being the strongest since July 2024.
Construction firms expressed heightened optimism for the year ahead, buoyed by expectations of securing further new orders. Sentiment reached a 34-month high, significantly surpassing the series average, with 41% of respondents sharing a positive outlook for 2025.
Rising workloads and preparations for 2025 projects prompted firms to increase staffing levels in December, marking the fourth consecutive month of job creation. The pace of hiring accelerated to a nine-month high, with employment increasing in every month of 2024 except August.
For further details, click here.
