Surge in construction activity creating new jobs

Costs, however, are also up in the sector...

Construction activity has hit a seven month-high, with the accelerating output causing a rise in demand for workers.

Ulster Bank's Construction Purchasing Managers' Index hit 62.3 in October, up from 58.7 in September. Any rate above 50 represents expansion in the sector, meaning that the building trade is really starting to thrive again in Ireland.

The rate of hiring reached an eight-month high last month, with one-third of Irish building firms reporting an increase in employment.

However, strong activity has started to push up costs, as suppliers increase charges due to high demand. According to Ulster Bank, delivery delays have also been experienced.

Overall, Irish construction firms are upbeat. 

Their confidence was up in October over the previous month, with two-thirds of companies expecting to be even busier over the next 12 months.

Simon Barry, Ulster Bank's chief economist for the Republic of Ireland, said the figures "paint an encouraging picture" for the sector, adding:

"Firms continue to report a strengthening in client demand amid a general improvement in economic conditions as an important contributor to the ongoing uplift in new business volumes.

"In turn, the healthy expansion of new orders continues to underpin increased demand for construction workers."