A survey which measures the health of the construction industry shows that activity in the sector fell sharply again in June, though the fall was not as big as in previous months.
The index recorded 36.3, compared with 31.1 in May. Though this was the slowest pace of decline since March 2008, it is still well below the key 50 mark which separates growth from contraction.
All three sectors of the index recorded sharp falls in activity - with the civil engineering index lowest at 30.9. Housing recorded 33.4 and commercial activity 38.5.
New business levels fell sharply again, while construction employment also dropped. But the employment index rose. 'The fact that this component is retreating from its record low suggests that the pace of job-shedding in the sector may be easing somewhat,' said Ulster Bank economist Simon Barry.
He also noted that the index which measures expectations of future construction activity moved above the 50 mark for the first time since March 2008. 'This is an early sign of fading pessimism within the industry such that activity could begin to pick up on a 12-month time horizon, albeit from extremely low levels,' Mr Barry said.
Property investment down 89% in H1
A report from property group CB Richard Ellis says very little activity was recorded in the Irish investment property market in the first six months of this year. It described this as an 'unprecedented' period.
Irish investors spent €41m on property in the six months, down 89% from a year earlier. CBRE said demand was showing some signs of improvement, but it expected only a 'small number of deals' in the second half.
The report also claimed that Government proposals to ban upward only rent reviews would have 'huge implications' for the Irish investment market.
'This proposed legislative change will essentially create a two-tier market, impact negatively on values and funding and put Ireland at a distinct disadvantage relative to the UK property investment market, while doing nothing to assist the occupiers who are currently struggling to meet rental payments,' CBRE said.
