Industry & Business

The construction sector has recorded its fastest growth in new orders in five months. The rate of job creation also picked up in November, according to Ulster Bank’s latest Purchasing Managers’ Index (PMI).

The construction Purchasing Managers Index tracks sentiment in the industry and showed a reading of 55.5 in November.

While this was below the reading of 56.3 in October, growth has been recorded in the sector for the past 27 months. Any figure above 50 signals growth in the sector, while a figure under 50 signals contraction.

Simon Barry, chief economist with Ulster Bank in the Republic of Ireland, said: “All three major sectors recorded expansion for the third month in a row, with the pace of activity picking up in commercial projects, and easing slightly in housing and civil engineering.

“Several other aspects of the detailed results provide encouragement about the sector’s performance at present. There was a notable acceleration in new business growth recorded by firms last month, with the new orders index picking up to a five-month high.

“Furthermore, the ongoing increases in current and prospective activity levels continue to underpin rising demand for construction workers, with the employment index also rising to its highest level since June.

“Finally, optimism levels among firms rose for the second month running and now stand at the third highest in the survey’s 15-year history.”