Business conditions in the construction sector here continued to worsen last month, although the fall was the slowest in five months.
The Ulster Bank's construction purchasing managers index showed that activity and new business fell sharply and jobs were cut at a considerable pace in January.
The index rose to 36.1 in January from 33.1 in December. Any reading above 50 indicates growth, while a reading below 50 signals a decrease. General activity had fallen every month since June 2007.
Each of the three monitored sectors - civil engineering, commercial and residential - saw lower activity last month. The steepest fall was in the civil engineering category, while the commercial sector registered the weakest decline. Activity on residential projects has fallen every month since November 2006.
'The January survey of the Ulster Bank Construction PMI indicates that there are some slight easing in the rate of contraction in activity last month,' commented Simon Barry, chief economist at Ulster Bank.
But he added there was no indication of any improvement in employment dynamics. He said the jobs index of the survey fell marginally and is still very consistent with a sector that is shedding labour.
However, some of the forward looking elements of the survey showed a bit more promise. The economist said the January survey picked up a clear improvement in optimism as respondents expressed an expectation that the wider economy will improve over the coming year.
'There were also indications that Irish construction firms are seeking growth opportunities in markets abroad, with a number of respondents looking to the UK in this regard,' he added.
