Irish AIB Construction Activity Grows for 3rd Month

The PMI declined to 50.4 in September 2026 from 50.7 in August, signaling a third consecutive monthly expansion in construction activity, albeit at a marginal pace. It was the slowest expansion in the sequence, with a marginal rise in new orders supported by stronger demand. Growth eased amid a further solid decline in residential construction activity. Meanwhile, civil engineering activity returned to growth, while commercial construction expanded for the third straight month. Employment fell for the first time in 11 months, while delivery times continued to lengthen and purchasing activity rose marginally. Input cost inflation accelerated to a three-month high amid reports of higher fuel and transportation costs. Looking ahead, business sentiment weakened from a six-month high in August, though it remained in positive territory, supported by rising new orders and a healthy pipeline of new projects.

The AIB Ireland Construction PMI eased to 50.7 in August 2026 from 53.0 in July, signaling a second consecutive monthly increase in construction activity, albeit at marginal pace. Growth was concentrated in the commercial sector, where activity rose for the sixth time in seven months, while civil engineering was broadly unchanged and housing activity declined solidly. New orders expanded for a second consecutive month, with the pace of growth accelerating to a five-month high, while stronger project pipelines lifted business confidence to a six-month high. Firms also increased input buying for the first time in three months, although employment growth slowed to a 10-month low. Input cost inflation accelerated, with oil and metals cited as key sources of higher costs, while supplier delivery times lengthened at the fastest pace in four months amid stock shortages and courier constraints. The use of subcontractors increased for a ninth consecutive month, though the pace of growth eased.

The AIB Ireland Construction PMI rose to 53.0 in July 2026 from 45.4 in June, signaling a solid rebound in construction activity after the sharp contraction in the previous month. The recovery was broad-based, with all three sectors expanding for the first time in 15 months. Commercial construction led the upturn, while residential activity returned to growth after three months of contraction and civil engineering expanded for the first time since April 2025. New orders also increased following a marked decline in June, although the rise was only slight amid a scarcity of tender opportunities. Employment grew for a ninth consecutive month at a faster pace, while firms also increased their use of subcontractors. Input cost inflation eased to a five-month low, although costs continued to rise rapidly, while supply-chain disruptions persisted due to international shipping issues. Business confidence strengthened for a third consecutive month to a four-month high.