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Construction drop smallest since 2007

Construction industry - Optimism growing
Construction industry - Optimism growing

A survey which measures the health of the construction industry has found that activity fell in the sector again in June, but the drop was the smallest for almost three years.

The Ulster Bank Construction Purchasing Managers' Index rose to 44.9 - the best figure since July 2007 - from 40 in May. Any figure below 50 means activity fell.

Ulster Bank economist Simon Barry said the pace of decline in the sector was 'clearly easing back'. He added that there was some optimism in the industry, with the expectations part of the survey above its long-term average for the third month in a row.

A breakdown showed that the housing index rose from 40 in May to 45.4, while commercial was up from 39.9 to 45.8. But civil engineering activity fell from 40.1 in June to 38.4. Mr Barry said this was likely to be due to the sharp pull-back in Government capital spending.

The employment index remained weak, however, at 40, though this was the smallest drop since February 2008.