The Ulster Bank Construction Purchasing Managers’ Index (PMI) posted above the 50.0 no-change mark for the first time in four months during December.
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At 52.0, from 48.2 in November, the rise signalled a modest increase in construction activity.
Housing activity rebounded in December, rising modestly following a first decline in almost six-and-ahalf years in November.
The sharpest expansion in activity was recorded on commercial projects, however, as the rate of growth accelerated from the previous month.
In line with the picture for total construction activity, new orders returned to growth.
The solid increase in new business followed two months of decline.
Irish construction firms gained confidence at the end of the year, with optimism rising to a six-month high in December.
Some panellists that forecast activity to rise over the course of 2020 mentioned that they expect new projects to commence in the coming months, while others indicated that reduced uncertainty around Brexit should help to support growth.
This confidence in the one-year outlook, coupled with rising activity in December, encouraged firms to expand their staffing levels further.
Moreover, the rate of job creation was solid, having accelerated from that seen in November.
Employment has now risen in each of the past 76 months.
Constructors also upped their input buying at a solid pace in December, with the increase at the end of the year following a modest decline in November.
Suppliers' delivery times lengthened in December, with the rate of deterioration in vendor performance broadly in line with those seen during October and November.
Some panellists indicated that increased online shopping meant that the availability of couriers had declined, thereby leading to delivery delays.
Finally, the rate of input cost inflation softened in December and was the slowest in three months.
That said, input prices continued to increase at a marked overall pace.
Respondents indicated that suppliers had raised their prices, with items such as oil, insulation and steel reported as increasing in cost. ■