The country's construction sector declined at the slowest pace since November 2007 in August, with builders expressing optimism that economic conditions will improve over the next 12 months, a new survey shows today.
The Ulster Bank Construction Purchasing Managers' Index rose to 38.8 from 37.9 in July - the highest lvel since November 2007. However, the index still remains well below the 50 mark that separates growth from contraction.
The August data showed that activity, new orders and employment all fell sharply despite the rates of decline easing somewhat in the three sectors - housing, commercial and civil engineering.
Ulster Bank said that for the second month in a row, activity on residential projects fell at the sharpest rate of the three monitored sections, despite the pace of reduction slowing to its weakest in 27 months. The housing index PMI registered a reading of 34.6 in August compared to a figure of 31.3 in July.
Activity on civil engineering projects fell substantially last month, the survey also reveals, and at a steeper pace than in July. The index of the sector came in at 35.5 compared to a reading of 36.1 the previous month.
The survey says the weakest fall in activity was seen in the commercial sector, with the index moving up to 39.8 from 38.7.
'The index has been on a gradually less-negative trajectory for five consecutive months now, having hit a record low in January of this year,' said Lynsey Clemenger, economist at Ulster Bank.
Meanwhile, new research by Ulster Bank predicts that Northern Ireland could emerge from recession by the end of this year.
According to the bank's latest Purchasing Managers' Indexes survey, there has been a significant rise in the number of Northern companies reporting growth.
Ulster Bank's Northern economist, Richard Ramsey, is quoted as saying that more than one in four firms reported a rise in business activity in August - a figure not seen since October 2007.
He added that 30% of companies have noticed a rise in new business - the largest percentage in two years.
While Northern Ireland is the only UK region which has yet to return to economic growth, this latest Ulster Bank report is cause for optimism.
It found that the drop in private business transactions is at its lowest since January 2008.
However, while average charges for services have fallen sharply across the region, the cost of raw materials or labour rose at its most marked rate for four months.
The bank's Northern economist, Richard Ramsey , said that more than one in four firms reported a rise in business activity in August - a figure not seen since October 2007.
He added that 30% of companies have noticed a rise in new business - the largest percentage in two years.
According to Ramsey, the pace of job losses is continuing to ease, with local firms reporting a more moderate decline in employment levels.
However, the North's construction sector is continuing to cut jobs.
