Ireland’s Construction Sector Sees First Growth in Eight Months
Ireland’s construction industry has turned a corner, expanding for the first time in eight months, according to the latest S&P Global survey released Monday. The surge was fueled by robust housing and commercial activity.
The headline BNP Paribas Real Estate Ireland Construction Purchasing Managers’ Index climbed to 51.6 in December, up from 47.5 in November. Any reading above 50 signifies growth in the sector.
Housing and Commercial Growth Shine
Among the three key categories, housing activity stood out, marking its fourth consecutive month of growth. December’s housing expansion outpaced November's, showcasing solid progress. Commercial activity also rebounded, moving into positive territory for the first time in four months. Meanwhile, civil engineering activity continued to decline but at a slower rate compared to previous months.
Demand Drives Momentum
The uptick in total construction activity stemmed from an improving demand environment, with new business inflows rising at their fastest rate in five months.
Looking ahead, optimism within the sector has reached its highest level in nearly three years. A striking 41% of firms expressed confidence in future growth, driven by expectations of increased new orders.
Job Creation and Developer Confidence
December also saw a boost in workforce numbers, as companies ramped up hiring to meet rising workloads and prepare for upcoming 2025 projects. The pace of job creation hit a nine-month high, reflecting the industry’s renewed vigor.
Despite ongoing input cost pressures, developers remain confident in the profitability of residential projects. Factors such as demographic growth, falling mortgage rates, real earnings growth, and strong government support are fueling this optimism.
John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland, remarked:
"Strong demand conditions continue to inspire confidence in delivering profitable residential schemes, even amid rising costs."
Ireland’s construction sector appears poised for a promising start to 2025, with growth momentum and optimism building across the industry.
To hear more about Ireland's Construction Job Market, reach out to our Specialist Consultants Brian Mitchell and Bea Holland for a confidential chat.
