Business conditions continued to weaken in the construction sector in April.
According to Ulster Bank's Construction Purchasing Managers Index for last month, employment declined and activity fell. Ulster Bank said the falling activity continued to be linked to the wider economic downturn in Ireland.
The index - a seasonally adjusted index designed to measure the overall performance of the construction industry - rose to 32.9 in April from 28.1 in March. But it still remained below the 50 mark which divides expansion from contraction.
Activity in each sector - housing, commercial and civil engineering declined - with housing the worst hit again last month.
However, the report points to one positive factor - the decline in commercial activity appears to have reached the bottom. Ulster Bank cautioned that activity will remain subdued for the foreseeable future.
It also points out that input prices fell at the second fastest pace in the history of the survey and marked the eighth fall in a row. Increased competition among suppliers was the main reason for the decline.
The outlook for activity in the sector remained negative in April as companies expect the economic downturn to continue. Over 44% of respondents forecast lower activity in a year's time.
'As early signs of stabilisation, albeit tentative, becomes evident abroad, the Irish construction sector may be past the worse,' commented Lynsey Clemenger, economist at Ulster Bank.
'Nevertheless, it will be some time before activity ceases to contract and the employment situation improves,' she added.
