Activity in the construction sector continued to grow strongly in June, according to figures released this morning.
The Ulster Bank Construction Purchasing Managers' Index recorded 58.5, up from 58.1 in May and well above the 50 mark which separates growth from contraction.
Ulster Bank economist Pat McArdle said civil engineering was now the main factor in the strong performance, suggesting that Government spending was sustaining the sector.
In contrast, housing was the weakest component in the index in June and in the first six months of 2006. 'It continues to expand but at a pace slightly below that of the past two years,' he said. The civil engineering part of the index recorded 63, with commercial at 57.1 and housing at 56.7.
Firms remained optimistic, and employment increased again, but higher prices for fuel and metals led to a substantial increase in costs.
