A new survey has shown that activity in the construction sector declined in July for the second month in a row.
The Ulster Bank Construction PMI recorded 47.5, well below the 50 figure which signals no change.
Ulster Bank chief economist Pat McArdle said confidence in the sector 'took a battering' as firms adjusted to the reality of falling employment. Employment levels fell at the sharpest pace for four years.
But the economist warned that there was a danger that the industry was too pessimistic. According to the survey, building companies anticipate lower construction activity in a year's time - the first time in four years that firms have been so gloomy.
A breakdown showed that the housing index recorded 33.8, up from 32.5 in June, though the commercial and civil engineering sectors picked up to 52.7 and 51.6 respectively.
