Irish construction activity expanded only slightly in May while employment declined, according to the latest figures from Ulster Bank's Construction Purchasing Managers Index.
The overall activity index weighted in at 50.7 in May, almost the same as the three-and-a-half-year low recorded of 50.6 in April. Any figure over 50 represents expansion.
Chief economist at Ulster Bank, Pat McArdle, said: 'With confidence fragile, the sharp curtailment of housing activity is welcome as a lower supply should help prevent greater falls in house prices'
In the housing sector the activity fell to 37 from 39.1 in May. But this was balanced out by growth in the commercial activity and civil engineering activity which came in at 57.3 and 55.6 respectively.
Despite this growth, employment in construction fell in the month because housing is the most labour intensive area. This is the first time since August 2003 that employment has fallen in the sector.
' Housing weakened further in May but commercial rebounded on cue and civil was also strong. However housing dominated as it accounts for over 60% of the total and its decline was sufficient to offset increased rates of activity in the other two areas, leaving overall construction activity broadly unchanged', Mr McArdle explained.
In the month input prices rose on higher prices for metal and oil, but the rise was at its weakest rate for almost two year.
