Irish Construction Shrinks the Most in 5 Months

The AIB Ireland Construction PMI dropped to 47.1 in April 2026 from March’s 10-month high of 53.2, marking the first contraction in three months. The latest figure also marked the steepest decline since last November, as new orders fell for the first time in five months and the steepest drop since August 2023 due to the impact of the Middle East conflicts. The decline was driven by a fall in housing activity for the first time in three months, while the civil engineering category continued to contract. Employment rose at the fastest rate in just over two years, while purchasing activity continued to increase. Suppliers’ delivery times lengthened to the greatest extent since May 2022 amid shipping delays linked to the conflict in the Middle East. On the price front, input cost inflation accelerated to its highest level since June 2022 due to higher fuel prices. Lastly, sentiment weakened to its lowest level in almost three and a half years amid intensifying inflationary pressures.

The AIB Ireland Construction PMI increased to 53.2 in March 2026 from 52.1 in February, marking the fastest expansion since March 2025 amid a further solid rise in new orders. New orders increased for the fourth consecutive month, though the rate of expansion softened slightly from the four-year high posted in February. Employment rose, with job creation the fastest in 15 months. Growth was driven by both commercial construction and housing activity, with rates of growth hitting one-year highs. Meanwhile, civil engineering activity continued to decline, though at the slowest pace in the current 11-month downturn. Purchasing activity also recorded its largest increase in just over four years. On prices, input cost inflation accelerated to its highest level since December 2022, driven by higher fuel prices. Suppliers’ delivery times lengthened amid courier shortages and rising fuel prices. Finally, sentiment weakened to a four-month low due to the impact of the war in the Middle East.

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.