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Ireland’s Construction Sector Faces Renewed Contraction

12 May 2026
Est. Reading: 2 minutes

Ireland’s construction industry has recorded a renewed downturn in activity, according to the latest AIB Ireland Construction Total Activity Index, even as preparations continue for one of the sector’s largest recruitment events in 2026.

The index fell to 47.1 in April 2026, down from 53.2 in March, signalling a return to contraction after a brief period of growth. A reading below 50 indicates a decline in overall activity.

The latest figures point to growing uncertainty across the sector, with geopolitical instability and rising cost pressures weighing on performance.


Falling activity driven by weaker demand and rising costs

The April data highlights several key trends affecting the Irish construction industry:

Activity level declines

Overall construction activity dropped sharply to 47.1, reversing March’s expansion and marking a renewed contraction in output.

New orders fall for first time in five months

New business declined in April, ending a period of gradual recovery seen earlier in the year.

Housing and civil engineering under pressure

Both housing and civil engineering segments recorded contraction, while commercial activity also faced continued headwinds.

Input costs rise significantly

Firms reported stronger inflationary pressure, with fuel-related disruptions contributing to increased supplier delays and longer delivery times.

Employment continues to grow

Despite the downturn in activity, construction companies continued to hire, indicating ongoing confidence in long-term demand.

Confidence softens but remains positive

Business expectations weakened due to geopolitical uncertainty, particularly linked to conflict in the Middle East. However, firms remain cautiously optimistic about future activity.


A sector moving through volatility

The April decline follows a mixed start to 2026. March had shown improvement, with the index rising to 53.2, its strongest reading in several months, following a weaker January performance of 48.6.

Recent volatility highlights the sensitivity of the sector to global economic conditions, supply chain pressures, and cost fluctuations, even as underlying demand for housing and infrastructure remains strong.

Construction & Engineering Jobs Expo returns to the RDS in 2026

Against this evolving backdrop, Ireland’s leading recruitment event for the sector will return in 2026, providing a key platform for employers and jobseekers to connect.

The Construction & Engineering Jobs Expo will take place on:

Date: Saturday, 17th October 2026
Location: Shelbourne Hall, RDS, Dublin

The event will bring together employers, recruiters, training providers, and professionals from across Ireland’s construction and engineering industries.

It will offer attendees the opportunity to:

  • Meet companies actively recruiting across the sector
  • Explore live construction and engineering roles
  • Engage with industry employers and recruiters
  • Learn about skills shortages and career pathways
  • Access training and upskilling opportunities

Supporting recruitment during a changing market

While short-term indicators point to contraction in activity, long-term demand for skilled construction and engineering professionals remains strong, particularly in housing delivery, infrastructure development, and civil engineering projects.

Recruitment events such as the Jobs Expo play an increasingly important role in helping employers access talent while supporting professionals seeking new opportunities or career progression.

Visit ConstructionJobsExpo.ie to register your interest, explore exhibiting opportunities, and stay updated on Ireland’s premier construction and engineering careers even

Stay up to date with the latest from Construction Jobs Expo

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