Irish Construction Sector Returns to Growth

2026-06-09 00:09 By Chusnul Chotimah 1 min. read

The AIB Ireland Construction PMI increased to 50.2 in May 2026 from April’s five-month low of 47.1, driven by a renewed increase in output and new orders.

New orders grew following their first decline in five months in April, reflecting an improvement in customer demand.

The rebound was driven by an increase in commercial activity, which grew at the fastest pace since March 2022.

In response to the rise in new orders, firms increased staffing and purchasing activity, with employment rising at a solid pace for the seventh straight month, while input buying rose modestly.

Delivery times lengthened, although the rate of deterioration was less severe than in April.

On the price front, input costs increased, driven by higher fuel and oil prices amid the war in the Middle East, although inflation eased slightly compared to the previous month.

Finally, sentiment improved from April's 41-month low, amid optimism that an end to the war in the Middle East would help improve business conditions.



News Stream
Irish Construction Sector Returns to Growth
The AIB Ireland Construction PMI increased to 50.2 in May 2026 from April’s five-month low of 47.1, driven by a renewed increase in output and new orders. New orders grew following their first decline in five months in April, reflecting an improvement in customer demand. The rebound was driven by an increase in commercial activity, which grew at the fastest pace since March 2022. In response to the rise in new orders, firms increased staffing and purchasing activity, with employment rising at a solid pace for the seventh straight month, while input buying rose modestly. Delivery times lengthened, although the rate of deterioration was less severe than in April. On the price front, input costs increased, driven by higher fuel and oil prices amid the war in the Middle East, although inflation eased slightly compared to the previous month. Finally, sentiment improved from April's 41-month low, amid optimism that an end to the war in the Middle East would help improve business conditions.
2026-06-09
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.
2026-05-12
Irish AIB Construction PMI Rises to 12-Month High
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.
2026-04-14