Irish Construction Contracts for First Time in 4 Months

Ireland's AIB construction PMI declined to 48.0 in October 2026 from 50.4 in September, signaling the first contraction in construction activity in four months. The contraction came amid lower output across each of the three types of construction monitored, alongside a reduction in new orders. Commercial and civil engineering also returned to contraction, joining housing. In response to the fall in new orders, firms lowered their employment for the second straight month as well as purchasing and use of subcontractors. Input costs rose due to higher fuel prices, although inflation eased from September. Higher input prices and falling new orders led construction firms to scale back their purchasing activity for the first time in three months, with input buying falling at the fastest pace since August 2022. Meanwhile, delivery times continued to lengthen. Finally, business sentiment weakened to a six-month low amid concerns about the impact of price rises on customer demand.

Ireland's AIB construction 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.