New figures show that the rate of decline in construction sector activity accelerated during May, as companies continued to cut jobs.
The Ulster Bank Construction Managers' index dropped to 41.1 in May from 43.7 in April. Any figure under 50 signals contraction. The sector has now declined every month for the last four years and Ulster Bank noted that the rate of contraction last month was the strongest so far this year.
The index looks at three areas of construction - housing, commercial and civil engineering. Last month, the civil engineering sector reported the sharpest decline in activity falling to 35.5 from 37.4. Rates of decline in activity on housing and commercial projects both accelerated sharply - falling from 41.5 to 37.6 and from 47.3 to 41.9 respectively.
The index shows that new orders fell for the ninth month in a row in May, with the latest fall the steepest since December last year. Falling new orders was the main reason for the latest cut in construction jobs.
It also said that input costs at construction firms increased sharply again last month, extending the current period of inflation to 13 months. The prices of steel and oil-related products were more expensive.
Lynsey Clemenger, economist at Ulster Bank, said that expectations of improved conditions in the economy generally continued to leave respondents to the survey optimistic that construction sector activity will be higher that the current extremely low levels in a year's time.
