Housing sector is construction industry's strongest performer for November

We're still not building enough new homes, however...

Housing sector is construction industry's strongest performer for November

File photo: RollingNews.ie

Housing was the strongest performing sector of the construction industry last month, buoyed by a leap in new orders.

The latest report from Ulster Bank also revealed that November saw the sharpest rise in employment since February. The Ulster Bank Construction Purchasing Managers' Index (PMI) clocked in at 59.8 for the month, down from the seven-month high of 62.3 in October but still well above the 50 mark that separates growth from contraction.

There are approximately €17.8bn worth of projects in the pipeline for 2017. Construction has been rising almost continuously since September 2013. 

The Construction Industry Federation (CIF) estimates that 112,000 employees are needed to work on projects up to 2020. Despite the increase in activity, the number of new residential units being built is expected to be less than half of the 25,000 needed to meet annual demand.

Ulster Bank's chief economist Simon Barry said:

"This is further welcome evidence of sustained, solid expansion in an area where strong performance is badly needed given the housing supply shortfall."