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New figures from the latest AIB Purchasing Managers’ Index indicate that construction activity in Ireland declined again in November, marking the seventh consecutive month of contraction. The continued drop reflects persistent weakness in demand and a slowdown in new project inflows.

The headline Construction Total Activity Index fell to 46.7 in November, down from 48.1 in October, remaining below the 50 threshold that separates expansion from contraction. Survey responses highlighted reduced demand and a fall in new orders, leaving many firms without sufficient new work to replace recently completed projects.

All three segments monitored in the index recorded declines during the month. Commercial activity, which had seen a modest improvement in October, reverted to contraction. Residential building continued its downward trend for a seventh month, although the rate of decline was the slowest since June. Civil engineering remained the weakest area, with a sharper fall than the previous month.

New orders fell for the fourth month in a row as companies reported softer demand conditions along with delays in project commencement. According to AIB’s Senior Economist John Fahey, the November data points to a further loss of momentum in the sector during the middle of the fourth quarter. He noted that the index has been below the breakeven point for seven consecutive months and that the pullback in activity is broad-based across commercial, residential and civil engineering projects.

Despite the contraction, the report did include some positive indicators. Employment levels rose after two months of decline, suggesting firms are maintaining capacity in anticipation of future growth. Survey respondents also remained broadly optimistic about increasing activity over the coming year, although confidence eased slightly compared with October.

The survey found that firms continued to scale back their use of sub-contractors, while the availability of subcontracted labour also tightened.

Overall, the November readings reflect a sector facing ongoing challenges, with order books under pressure and activity contracting across all major segments, yet with some signs of resilience in employment and future expectations.

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