Irish Construction Activity Accelerates as Civil Engineering Recovers

Irish construction activity rebounded in July as the Purchasing Managers' Index rose to 53.0, although growth in the housing sector remained marginal.

According to the AIB construction Purchasing Managers' Index (PMI) published by The Irish Times, the headline index rose significantly from 45.4 in the previous month. This transition back above the 50.0 threshold indicates renewed growth across the construction sector following a weak start to the summer.

While all three monitored sub-sectors—housing, commercial, and civil engineering—expanded during July, the pace of growth varied:

• **Housing:** Activity in the residential sector recorded a marginal growth rate of 50.5. AIB attributed this modest performance to improved customer demand, but noted that overall expansion was constrained by a scarcity of tender opportunities.
• **Civil Engineering:** This sector, which encompasses infrastructure such as water, electricity, roads, and public housing, recorded a index reading of 51.7. This represents the sub-sector's first month of growth since April 2025, recovering from a decline in public infrastructure works in June.

The report also highlighted that inflation and supply chain pressures affecting the building industry have eased.