Irish construction stays out of the Brexit "line of fire"

Activity picked up in the sector in July

Irish construction stays out of the Brexit "line of fire"

Image: Photocall Ireland

Ireland’s construction sector continued to expand last month - the Ulster Bank Construction Purchasing Managers’ Index rose from 59.7 in June to 61 in July. Any reading above 50 indicates growth.

Rising workloads meant that firms’ purchasing activity increased and companies took-on more staff.

Despite the uncertainty created by the Brexit vote, construction activity grew at its fastest rate in four months.

58% on respondents were optimistic about the outlook for the sector.

Simon Barry, Chief Economist Republic of Ireland at Ulster Bank commented on the data:

"The July survey results offer the first glimpse into Irish construction trends following the UK referendum. The continuation of strong trends in overall activity and new business provide important encouragement that the sector’s recovery is maintaining solid momentum at present.

"It is important not to be complacent on this front, however. Uncertainty remains high about the extent of the possible adverse impact on the Irish economy from Brexit-related risks, even if the primarily domestic-focussed construction sector isn’t in the line of fire to the same extent as the more export-oriented manufacturing sector where recent trends have clearly deteriorated as Brexit effects have begun to take hold."