New figures show that activity in the construction sector continued to fall sharply last month.
The Ulster Bank Construction Purchasing Managers' Index recorded 33, slightly better than July's 31.3 but still below the key 50 level which separates growth from contraction.
Ulster Bank chief economist Pat McArdle said the part of the index which measures employment fell to a record low, confirming that the large rise in the August Live Register was probably linked to construction.
But he said the other indices painted a more encouraging picture, with 'tentative signs' that declines in the civil and commercial sectors had levelled off. The commercial index moved up from 32.3 to 35, while civil engineering fell from 40 to 38.2. Housing recorded 25.4, up slightly from July's 23.2.
Mr McArdle said there was some 'welcome relief' on the costs front with prices reversing much of the previous month's rise. He said steel and fuel prices fell as did rates charged by sub-contractors. But firms remained pessimistic, with 40% expecting lower activity in 12 months' time.
