The construction sector recorded an increase in activity levels last month for the first time in almost a year, according to the latest Purchasing Managers' Index from AIB.
The monthly survey said the renewed rise in activity in the sector in February, ended a period of reduction stretching back to May last year.
AIB said the expansion in activity was recorded amid "continued improvements in demand conditions".
The headline seasonally adjusted Construction Total Activity Index moved back above the 50 no-change mark last month, for the first month since April 2025.
The reading was 52.1 in February, up from 48.6 in January.
AIB said the "modest expansion in activity midway through the opening quarter of the year ended a nine-month sequence of contraction".
The Construction PMI said the rise in total construction activity reflected renewed expansions in work on both housing and commercial projects in February.
AIB Senior Economist, John Fahey, said the sectoral breakdown indicates that "growth was driven by two of the three sub-sectors".
"The best performing of the three was commercial activity. It registered its first expansion in four months and at its highest level since the end of the first quarter of 2025."
He said the residential sector "returned to growth for the first time in ten months, albeit the pace of expansion was marginal".
"Civil engineering retained its position as the weakest of the three sub-sectors, although the rate of contraction eased for the third consecutive month," he said.
The data showed that new orders increased for the third successive month in February, and at a marked pace that was the strongest since February 2022.
The higher new orders and the start of new projects "encouraged constructors to expand their purchasing activity and workforce numbers" in February.
"Against the backdrop of expanding activity levels and an improving pipeline of projects, construction firms increased their staffing levels for the fourth month in-a-row," Mr Fahey added.
Increase in employment 'most marked since January 2025'
The Construction PMI said the latest increase in employment was "the most marked since January 2025".
It also found that the rise in input buying was the strongest in almost four years, while sub-contractor usage was also up for the third month running, their availability fell to the largest extent since May last year.
AIB said construction firms also "continued to face sharply rising input costs, with panellists reporting higher metals prices in particular".
And the rate of inflation "remained elevated despite easing slightly" from that seen in January.
"Suppliers' delivery times continued to lengthen, with delays inked to factors including shortages of couriers and Dublin port congestion."
However, the survey found that companies remained confident about the outlook for the year-ahead.
John Fahey said Irish construction firms "continued to hold an optimistic view on the prospect of increasing activity levels over the coming 12 months, albeit the strength of sentiment in this regard did ease compared to January".
