Irish construction activity continued to grow in April, with the commercial sector showing the strongest momentum, according to the latest AIB Ireland Construction Total Activity Index.
While the overall index dipped slightly to 52.4 from 53.9 in March, it remained above the critical 50-point threshold, signalling a second consecutive month of expansion in the sector.
Commercial construction led the way, posting the fastest increase in activity, while civil engineering registered its strongest performance since February 2022. Residential building continued to expand for the eighth month in a row, although at the slowest rate among the three key sectors.
The growth in activity was underpinned by a rise in new business, which increased for the third month in a row. This upturn in demand prompted firms to boost employment and increase their use of subcontractors. Hiring grew at a faster pace than in March, and subcontractor usage also ticked up, with rates rising at the quickest pace in a year.
However, the sector is also facing headwinds. Increased demand for materials led to higher input prices, with suppliers responding by raising costs. Delivery times were impacted by staffing shortages, adding further pressure on supply chains.
Commenting on the findings, AIB Senior Economist John Fahey said: “The survey for April showed that the sector had a solid start to the second quarter. The headline index remained above the key 50 level, consistent with a second consecutive month of expansion in activity. Firms attributed the growth in activity to an improvement in demand conditions. This was reflected in new orders expanding for a third straight month. This backdrop of new projects saw firms continue to increase their staffing levels.”
Looking ahead, construction firms remain broadly optimistic, with about one in three expecting activity to rise over the next 12 months. However, some companies noted concerns about the potential impact of uncertainty in US trade policy on future growth.
The AIB Ireland Construction PMI is compiled by S&P Global based on survey responses from around 150 construction firms, collected in the second half of each month. The index measures changes in activity compared to the previous month, providing a snapshot of sectoral momentum across Ireland.
