Activity in the Irish construction sector continued to weaken in January, but the pace of deterioration slowed from the drop in December as the severe winter weather eased.
The Ulster Bank construction purchasing managers' index - a seasonally adjusted index which tracks changes in total construction activity - posted a reading of 45.3, up from December's reading of 40.6. Any figure below 50 signals contraction.
The survey noted that activity, new orders and employment all continued to decrease during January. The construction sector has declined every month since June 2007.
The index looks at three sectors of the construction sector - housing, commercial and civil engineering. The civil engineering sector continued to be the worst-performing sector with the index falling 30.2 from 37.4. Commercial activity fell at a marked pace, while housing activity decreased at the second-lowest pace since February 2007.
Ulster Bank says that the rate of contraction in new business moderated last month, mainly due to repair work following the severe weather in December. But employment numbers at Irish building firms fell for the 45th successive month in January.
The index noted that business sentiment improved slightly last month as it reached a five-month high. 'Positive sentiment regarding the prospects for activity growth over the coming year partly reflected improving global economic conditions,' Ulster Bank said.
