The headline figure in the AIB Ireland Construction Total Activity Index moved further below the no-change 50 mark, dropping from 48.1 in October to 46.7 in November. Activity has now decreased in each of the past seven months.
Activity decreased across all three categories, as commercial construction once more fell back into decline. Work on housing projects fell for the seventh consecutive month, although at the slowest pace since June. Civil engineering posted the sharpest decline, as the rate of contraction accelerated from October.
“The AIB Irish Construction PMI survey for November points to a renewed loss of momentum in building activity levels midway through the fourth quarter,” said John Fahey, AIB’s senior economist.
“The headline index of 46.7 in November, compared to 48.1 in October, suggests a faster pace of contraction last month. The sectoral breakdown showed that the weakness in activity levels was broad-based across the three sub-sectors.
“Commercial construction fell back into contractionary territory in November, having seen a modest pace of expansion in October. The downturn in residential building persisted, with activity levels declining for the seventh successive month, although the pace of contraction eased in November.
“Civil engineering also posted a seventh straight month of contraction, with the pace of decline worsening, resulting in it being the weakest performing sub-sector.”
New orders also decreased for the fourth consecutive month as companies reported weak demand and project delays. Nevertheless, firms are optimistic that they will see growth over the coming year. A number of respondents to the survey suggested they expect to be busier in 2026.
Staffing levels increased for the first time in three months, and there was a slight rise in input buying. Firms continued to reduce their usage of sub-contractors, however, and their availability also declined.
Companies purchasing items were faced with a further lengthening of suppliers’ delivery times, continuing a trend seen over the past 18 months. A number of firms surveyed said they were waiting for stock to become available.
Construction firms also reported an increase in input costs, which rose for the second consecutive month, and were the fastest since March.
The AIB Ireland Construction Index is compiled by S&P Global from responses to questionnaires sent to a panel of about 150 construction companies.
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