The construction industry has began to see a rise in activity in the UK since Covid-19 hit it's economy with a rise of 8.2% in May after record fall in April during the height of lock-down. More specifically to the Irish market, the Ulster Bank Construction Purchasing Managers' Index (PMI) posted 51.9 in June- the first time it has reached over 50.0 in four months.
Simon Barry, chief economist Republic of Ireland at Ulster Bank, said:
“The latest results of the Ulster Bank Construction PMI survey. signalled a welcome return to expansion in Irish construction activity in June. Notably, the headline PMI index rose sharply last month to get back to above the 50 break-even level for the first time since the corona-virus hit the Irish economy."
“Mirroring the pattern of the headline PMI, all three sectoral sub-indices recorded sharp gains last month. This was particularly so in the case of housing as its PMI rose from 21.4 in May to a ten-month high of 55.8 in June, signalling a fast expansion in activity following the extreme weakness reported in recent months.”
In addition, commercial activity has returned to positive growth leading to a four-month high.
He added: “Overall, the June PMI is an encouraging sign that the construction sector is now more clearly in recovery mode following the easing of restrictions which took hold during May. Furthermore, a headline reading of 51.9 also signals construction out performance relative to both the services and manufacturing equivalents (which stand at 39.7 and 51 respectively). Other details within the survey also offered some encouragement, with the New Orders and Employment indices both recording sharp trajectory improvement last month to stand at 46 and 43.3 in June, respectively.”
Despite this, both new businesses and employment has remained in contraction in June. However, these indicators are expected to return to expansion in the months to come, as firms indicated a positive outlook for the year ahead and years to come.
It is without saying that firms have decreased their employment levels throughout this crisis and have been operating on relatively low work-forces. Nonetheless, opportunities are emerging once again with several of our clients seeking talent and heading for growth whilst making any necessary adaptations to the current times.
Overall, the Irish construction market is once again headed for positive growth as it begins to make a strong come-back in comparison to other markets around the globe. Now, is no less than ever, a good time to seek new opportunities in growing markets.
Article sources:
Commentaires