Ireland AIB Construction PMI

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.

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.

The AIB Ireland Construction PMI declined to 46.7 in November 2025, down from October’s four-month high of 48.1, signaling the seventh consecutive monthly contraction in the sector. The latest reading came as new orders continued to drop amid weak demand and project delays, with reductions in construction activity registered across all three categories. Commercial activity recorded a renewed and solid decline, while civil engineering posted the sharpest fall. Meanwhile, work on housing projects decreased for the seventh straight month, though at the slowest pace since June. However, firms increased employment for the first time in three months, and purchasing activity ended a four-month sequence of contraction amid improving growth expectations for the coming year. Suppliers’ delivery times continued to lengthen. On prices, input cost inflation accelerated to an eight-month high, prompting firms to raise their selling prices. Lastly, sentiment weakened to a four-month low.