Housing activity drops for first time in nine months, but input costs rise sharply
Uncertainty around US trade policy is thought to be one reason for the dip. New orders continued to grow, but the rate of expansion was at a three-month low.
The decrease in housing activity ended an eight-month sequence of growth, but the rate of decline was less than in the civil engineering sector.
Commercial activity continued to rise, following a good showing in April.
John Fahey, senior economist with AIB, noted that the headline index suggested a modest contraction in activity levels for construction, the first time since February it had fallen below 50.
'There were some encouraging signs contained in other aspects of the May report,' he said.
'New orders, which are regarded as a leading indicator, expanded for the fourth month in a row, although the pace of growth was at a three-month low. The construction sector also continued to increase its staffing levels.
'Employment rose at its fastest pace since January as firms prepared for the start of work on new projects.
'Firms in the construction sector continued to hold an optimistic view that activity levels will increase over the coming 12 months. This outlook was underpinned by the prospect of new projects getting under way.'
Input costs increased sharply again, with the pace of inflation little changed from April, which was itself above the series average. Sub-contractor rates also rose rapidly, with the pace unchanged from the one-year high recorded in April.
When construction companies bought materials in May, they were again faced with lengthening delivery times, which they sometimes linked to staff shortages at suppliers.
Staffing levels rose for a third consecutive month, although modestly. The rate of expansion in the use of sub-contractors also quickened.
Sub-contractor availability decreased to the largest extent since June 2022.
The rise in new orders, and the impending start of new projects, contributed to the optimism in the construction sector about the year ahead.
The AIB Ireland Construction PMI survey is compiled by S&P Global from responses to questionnaires sent to a panel of about 150 construction firms.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
16 minutes ago
- Irish Times
Shares advance as corporate earnings parade ramps up
European and US shares advanced at the start of a busy week on the corporate earnings and policy fronts, with the European Central Bank's governing council set to meet on Wednesday and Thursday. On Wall Street, the main indices hit record highs on big gains from megacap stocks. DUBLIN Outperforming many European indices, the ISEQ closed up 1.3 per cent on Monday, led higher by a surge in Ryanair's shares. The airline advanced by 5.7 per cent to €24.44 per share after reporting that its profits more than doubled to €820 million in the three months to the end of June. Ryanair chief executive Michael O'Leary said the carrier's fares had benefited substantially from having a full Easter holiday in April. READ MORE Bank shares were mixed, with AIB edging slightly higher to €6.58 per share while Bank of Ireland dipped by 0.3 per cent to €11.81 per share. Shares in hotel group Dalata slid 0.3 per cent to €6.37 per share. LONDON UK shares inched higher, supported by industrial miners that jumped on hopes of stimulus from China. The benchmark FTSE 100 index closed up by 0.2 per cent, and the domestic-focused FTSE 250 added 0.5 per cent. Led by Antofagasta, which jumped 4.7 per cent, mining stocks were among the biggest gainers on the session. Anglo American jumped 3.3 per cent, with Glencore advancing by 3 per cent and Rio Tinto adding 2.7 per cent. The move came on foot of China's promise to stabilise its industrial growth, and on hopes for more stimulus from the world's largest commodity consumer. BP rose 0.26 per cent after naming former CRH chief executive Albert Manifold as its next chairman. Activist Elliot Investment Management said it would work with the Irishman to 'urgently' address shortcomings at the oil major. Banks ended the day well. NatWest finished 1.4 per cent higher, with Lloyds up 1.3 per cent and HSBC edged 1 per cent higher. EUROPE European shares were softer as markets await developments in trade talks between the EU and the US. The blue-chip Stoxx 50 index fell by 0.3 per cent while the pan-European Stoxx 600 dipped by just over 0.1 per cent. Shares in Stellantis jumped by 1.5 per cent despite the Fiat and Peugeot-maker reporting a net loss of €2.3 billion for the first half of the year. The company also said it would take a €300 million hit from the impact of Trump's tariffs, including the cost of lost production. Other automakers also jumped, with BMW up 1.1 per cent, Volkswagen up 0.6 per cent and Mercedes-Benz ahead by 0.4 per cent. Also on the earnings front, Portugal's Galp Energia rose 1.7 per cent after raising its core profit target and announcing that it plans to find a partner to develop a promising oil discovery off Namibia. NEW YORK The S&P 500 and the Nasdaq reached new record highs on Monday, bolstered by gains in megacaps as investors geared up for the week's big tech earnings, while the prospects of fresh trade deals also boosted sentiment. The S&P 500 advanced by 0.6 per cent, while the Nasdaq Composite jumped 0.5 per cent and the Dow Jones Industrial Average moved 0.5 per cent higher to just 1.28 per cent below its all-time high. Verizon gained 4.1 per cent after boosting its annual profit forecast. The stock also drove up the communications sector, which emerged as the top gainer among other sectors. The spotlight was on Google-parent Alphabet and electric-vehicle maker Tesla, whose results this week will kick off the 'Magnificent Seven' earnings parade, and could set the tone for Wall Street. Shares of Alphabet rose 2.1 per cent, while Tesla dipped 0.2 per cent. Both stocks have lagged their peers so far this year. – Additional reporting: Bloomberg, Reuters
The Journal
4 hours ago
- The Journal
How will Ireland divvy out €200 billion? 5 politicians are signing off on big decisions today
THE LEADERS OF the coalition will meet with the two money ministers this afternoon to finalise capital expenditure plans for the coming decade. Tomorrow, a review of the National Development Plan (NDP) — which sets out government infrastructure spending up to 2035 — will be published by the government. Overall, €200bn in spending is planned for the coming decade, with an additional €30bn being injected into Ireland's infrastructure since the plan was first announced. This money will be made up of the €14bn Apple Tax , the sale of shares in AIB, and money from other State funds, including the Infrastructure, Climate and Nature Fund. Taoiseach Micheál Martin, Tánaiste Simon Harris, and Minister of State Seán Canney (who represents the Regional Independents in government) will today meet with Finance Minister Paschal Donohoe and Minister for Public Expenditure Jack Chambers to flesh out which Departments the additional money will be directed to. Advertisement Speaking on RTÉ Radio 1′s Morning Ireland earlier today, Canney said the 'broad figures' for each Department will be announced tomorrow, but it will be at a later date that each Department will publish its implementation plan for the spending. Canney was tight-lipped on details about what will actually be announced, however, he stressed that it will be important that what is announced is 'functional' rather than 'award-winning'. 'Especially in housing and in hospital infrastructure,' he said. 'I think most people would like to have a home that's comfortable and functional rather than have an award-winning housing estate from an architectural and aesthetic point of view. 'So that's that's the key message in this National Development Plan, is that we're here to make sure that whilst we're putting more money in, we want to see more coming out at the other end, and want to see it coming out quickly.' On top of the main takeaways from the publication of the NDP review tomorrow, the announcement may also give us a further glimpse into what the Regional Independent TDs secured as part of their government formation deal. For example, Canney, who is minister of state in the Department of Transport with responsibility for roads, confirmed that more road projects will be given the go-ahead as a result of tomorrow's announcement. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
4 hours ago
- Irish Examiner
Irish M&A activity up 4% in first half of 2025 despite global challenges
Irish merger and acquisition (M&A) activity has remained durable despite global challenges, a new report from law firm William Fry has found, with a total of 236 deals being announced in the first six months of 2025. It marks a 4% rise in transaction volume compared to the same period in 2024, while total deal value fell to €8.8bn, which reflected a more than 50% decline year-on-year. The law firm said this was underpinned by a slowdown in large-cap and transformational transactions. However, the volume growth signals continued appetite for strategic acquisitions and investments in the Irish market, William Fry said. Mid-market size deals continue to dominate, with 88% of disclosed deal values ranging between €5m and €250m, the report found. Meanwhile, transformational deals, which are deals valued at more than €500m, matched figures from the first half of 2024. The largest deal of the period was the €1.9bn acquisition of Nordic Aviation Capital A/S by Dubai Aerospace Enterprise Ltd, a subsidiary of the Investment Corporation of Dubai (ICD). Some 63% of Irish deals involved overseas bidders, up from 57% in the first half of 2024, with strong activity from the US, UK and Norway. Meanwhile, private equity accounted for 24% of Irish deals, with deal volume up 39% year-on-year. However, the aggregate value of those deals fell by 71%. The first quarter of 2025 showed to be particularly strong, with 138 deals worth €6.3bn. This represented a 30% growth in volume and 48% in value compared to the first three months of 2024. Inbound M&A activity continues to dominate, accounting for 63% of all Irish deals in the first half of 2025, up from 57% in the same period last year. A total of 148 inward investment transactions were announced, including 83 in the first quarter alone, the highest quarterly total in five years. Overseas bidders led 15 of the top 20 deals, with strong participation from the traditional jurisdictions of US and UK as well as Norway, which was involved in two of the largest transactions, the report said. Private equity firms announced 57 deals in the first half of 2025, a 39% year-on-year increase in volume, though overall deal value fell to €4.2bn, down from €14.6bn in the same period in 2024, which was bolstered by megadeals such as Apollo's investment in Intel's Fab 34. 'Irish M&A activity remains resilient despite global challenges, with a modest increase in deal volume in the first half of 2025," said Andrew McIntyre, Head of Corporate/M&A at William Fry. "While deal values moderated due to fewer large transactions, the data highlights the strength of Irish assets. International interest is strong, and private equity is showing renewed momentum in the mid-market. Overall, these trends suggest Ireland is well-positioned for continued deal making in the second half.' Looking ahead, Mr McIntyre said there was a "cautious optimism" for continued M&A activity, supported by projected GDP growth, ECB rate cuts, and momentum in key sectors like renewables and digital transformation. "Ireland's new FDI screening regime has had minimal impact so far on inbound M&A," he added. "However, geopolitical risks - especially in the Middle East, Eastern Europe, and the US -remain elevated.'
