The Ulster Bank's monthly analysis of trends in the construction sector continues to show a substantial deterioration in business conditions in the industry.
Although at its highest reading for four months - at 36.6 - the Ulster Bank's Construction Purchasing Managers Index saw activity continuing to fall in all three construction areas in March. It had stood at 35 in February.
The PMI has shown a lower reading only three other times in its entire survey history. These readings occurred in the last three months.
Housing remained the worse performing area of the construction industry, with the index showing a reading of 27.6 - barely unchanged from February's reading of 27.5. Civil engineering activity fell sharply, with its index showing a reading of 37.8, up from 36.9 the previous month. Commercial activity declined solidly with its index registering 46.4, up from 43.7 in February.
Any reading below 50 signals contraction in the industry, while a reading above 50 signals growth.
New orders continued to fall sharply last month with around 40% of firms recording a decline. The data also showed a record contraction of staffing levels with employee numbers falling for the 11th month in a row.
The survey shows that prices paid for inputs increased moderately as firms reported higher fuel and raw material costs. However, the rate of cost inflation was well below the average for the past year.
'Signs last month that there was some levelling off in the rate of decline in construction activity were again evident in March, when all three sub-components posted slightly higher numbers,' commented Pat McArdle, Ulster Bank's chief economist.
'However, the numbers remained below 50, indicating that activity in March was down significantly, in particular in the case of housing and civil engineering,' he added.
