Boom in new construction jobs as figures soar to near record levels
A surge in new construction jobs reached near record levels in Ireland last month, new figures indicate.
The number of firms reporting workforce expansions (27%) in the latest Ulster Bank Construction Purchasing Managers' Index was second highest recorded since the monthly survey was first run over 16 years ago.
The PMI noted that activity in the Irish construction sector continued to rise sharply in January.
This was prompted by an increase in new orders.
On the price front, the rate of input cost inflation quickened to the sharpest since February 2007.
The PMI provides a seasonally adjusted index that tracks changes in total construction activity.
Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, said: "Irish construction activity continues to grow at a healthy pace according to the latest results of the Ulster Bank Construction PMI.
"The headline PMI index remained comfortably in expansion territory in January, albeit that the pace of growth eased for the third month running consistent with a modest loss of momentum early in 2017 after a robust end to last year.
"Very encouragingly, residential activity remains a particular bright spot with housing activity continuing to rise at a rapid pace, while commercial activity also very much remains in expansion mode, though the pace of growth has eased in recent months.
"Civil engineering continues to lag behind the other sectors, with respondents reporting a third consecutive monthly decline in activity.
"Respondents continue to judge the Irish construction outlook to be very favourable. Confidence about future activity prospects remained strongly positive in January amid further solid gains in new orders, despite some easing in the rate of increase.
"Indeed, buoyed by the ongoing increase in work volumes, last month saw a substantial and accelerated rise in staffing levels with the rate of job creation picking up to its second-fastest in the survey's 16-and-a-half year history.
"One note of caution stems from further evidence of building cost pressures with the rate of input cost inflation picking up to its quickest in almost 10 years.
"Respondents reported higher prices for oil-related products and for items sourced from UK suppliers, the latter effect consistent with growing signs of Brexit-related price and costs increases in the UK economy."