Employment in Ireland’s construction sector declined in February, marking the end of a five-month period of job growth, according to the latest AIB Ireland Construction PMI report.
The report reveals that staffing levels were scaled back midway through the first quarter of 2024, as firms adjusted their workforce in response to evolving market conditions. The downturn comes after a period of steady expansion in the sector, raising concerns about the pace of construction activity in the months ahead.
Despite this decline in employment, other key indicators in the report highlight a mixed picture for the industry. While certain segments continue to show resilience, factors such as project delays, cost pressures, and economic uncertainty may have contributed to the decision by firms to reduce staffing levels.
AIB Ireland Construction Purchasing Managers' Index (PMI)
The AIB Ireland Construction Purchasing Managers' Index (PMI) is a monthly economic indicator that measures activity levels in Ireland's construction sector. It is compiled from survey responses of construction firms and provides insights into trends in employment, new orders, output, and business confidence.
Key features of the AIB Ireland Construction PMI:
- Employment Trends – Tracks job creation or reductions in the sector.
- Output Levels – Measures growth or contraction in construction activity.
- New Orders – Indicates demand for future construction projects.
- Sector Breakdown – Covers housing, commercial, and civil engineering construction.
A PMI reading above 50.0 indicates expansion, while a reading below 50.0 signals contraction. The report is widely used by policymakers, analysts, and businesses to assess the health of Ireland’s construction industry.
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