DUBLIN (dpa-AFX) - Ireland's construction sector grew at a slower pace in September largely due to the solid decline in housing activity, survey results from S&P Global showed Tuesday.
The AIB construction Purchasing Managers' Index posted 50.4 in September, down from 50.7 in August. The score was slightly above the 50.0 no-change mark to signal a slight monthly expansion in output in the sector.
The growth was limited by a further fall in work on residential projects in September. Housing activity dropped for the second straight month, while civil engineering activity returned to growth. Work on commercial projects expanded for the third consecutive month.
Stronger demand conditions contributed to a third successive monthly increase in new orders in September. Constructors raised their purchasing activity marginally. Meanwhile, employment decreased, ending a 10-month sequence of job creation.
Regarding prices, the survey showed that input price inflation accelerated to a three-month high amid higher fuel costs.
There was a further marked lengthening of lead times due to shortage of delivery drivers and lack of stock at suppliers.
Finally, the 12-month outlook for construction activity improved in September but the level of optimism dropped from the six-month high seen in August.
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