Irish Construction Activity Returns to Growth

2026-03-10 01:52 By Erika Ordonez 1 min. read

The AIB Ireland Construction PMI rose to 52.1 in February 2026 from 48.6 in January, marking the first expansion since April 2025 amid stronger demand.

New orders increased for the third straight month at the fastest pace since February 2022.

Growth was driven by commercial construction, while housing activity returned to growth after ten months, albeit modestly.

Meanwhile, civil engineering activity continued to decline, though at the slowest pace in the current downturn.

With workloads rising, firms boosted employment for the fourth straight month, the strongest gain since January 2025.

Purchasing activity also recorded its largest increase in nearly four years.

Input costs continued to climb sharply, largely due to higher metals prices, though inflation eased slightly from January.

Suppliers’ delivery times lengthened amid courier shortages and congestion at Dublin port.

Business sentiment remained strongly positive, supported by expectations of further growth in new orders.



News Stream
Irish Construction Activity Returns to Growth
The AIB Ireland Construction PMI rose to 52.1 in February 2026 from 48.6 in January, marking the first expansion since April 2025 amid stronger demand. New orders increased for the third straight month at the fastest pace since February 2022. Growth was driven by commercial construction, while housing activity returned to growth after ten months, albeit modestly. Meanwhile, civil engineering activity continued to decline, though at the slowest pace in the current downturn. With workloads rising, firms boosted employment for the fourth straight month, the strongest gain since January 2025. Purchasing activity also recorded its largest increase in nearly four years. Input costs continued to climb sharply, largely due to higher metals prices, though inflation eased slightly from January. Suppliers’ delivery times lengthened amid courier shortages and congestion at Dublin port. Business sentiment remained strongly positive, supported by expectations of further growth in new orders.
2026-03-10
Irish Construction Shrinks the Least in 7 Months
The AIB Ireland Construction PMI increased slightly to 48.6 in January 2026 from 48.4 in December 2025, signaling the ninth consecutive month of contraction in the sector. All three sub-sectors registered contraction, with civil engineering remaining the weakest, although the rate of contraction eased slightly. The latest reading also marked the softest contraction since June, mainly supported by solid growth in new orders. New business expanded for the second consecutive month, and at the fastest pace since March last year. In response to rising new orders, firms further increased employment and purchasing activity, although job creation remained modest. Meanwhile, suppliers’ delivery times lengthened due to stock shortages and traffic delays. On the price front, input cost inflation accelerated, driven by higher copper prices. Looking ahead, business sentiment improved to its highest level in a year, amid expectations of a pickup in construction activity.
2026-02-10
Irish Construction Shrinks the Least in 6 Months
The AIB Ireland Construction PMI increased to 48.4 in December 2025, up from 46.7 in November, signaling the eighth consecutive month of contraction in the sector. The latest reading also marked the softest contraction since June, mainly supported by a rebound in new orders. New orders returned to growth in December, increasing for the first time in five months as client demand picked up at the end of 2025, with reductions in construction activity easing across all three categories. In response to rising new orders, firms raised employment and purchasing activity for the second consecutive month, albeit at modest rates. Meanwhile, suppliers’ delivery times lengthened due to stock shortages and traffic delays. On prices, input costs rose, driven by higher metal prices. However, input inflation eased from November’s eight-month high, although it remained above the average for 2025 as a whole. Looking ahead, business sentiment improved to its highest level in nearly a year.
2026-01-13