Ulster Bank's latest survey on the state of the construction market shows the worst figures for the sector since the survey began almost eight years ago.
The Purchasing Managers' Index in April stood at 34.4 in April - its lowest level since June 2000 and down from a figure of 36.6 in March. The index has now signalled contraction - below 50 - in each month since June 2007.
Ulster Bank says that housing remained the worst performing of the three construction sectors in April. Commercial activity fell at the sharpest pace since May 2003, while the decrease in civil engineering was the strongest for over four and a half years.
New orders declined at a record pace with falling demand for housing, worsening economic conditions and greater competition all contributing to the fall. This resulted in employment levels contracting at a record pace last month, Ulster Bank said.
Input prices rose strongly in April, with firms reporting higher costs for metals and fuel. Construction firms remained negative regarding the outlook for the year ahead. They were pessimistic overall for the third time in five months, with negative expectations blamed on shortages of new work for tender, worsening economic conditions and the strength of the euro.
'Though it remains the case that the faster the contraction in output, the sooner the eventual turnaround, respondents were more pessimistic regarding the future, expecting that activity in a year's time will be slightly below current levels,' commented Ulster Bank's chief economic Pat McArdle.
'This is consistent with our view that new house completions next year will remain low as the overhang of supply is cleared,' he added.
