Housing activity drops for first time in nine months, but input costs rise sharply
The headline figure for the AIB Ireland Construction PMI dipped to 49.2, down from 52.4 in April, and below the 50 no-change mark, indicating a slight reduction in total construction activity.
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 Post
2 days ago
- Irish Post
Irish chicken farmer stars in new M&S advertising campaign
AN Irish farmer is the star of a new advertising campaign launched by Marks and Spencer this week. Monaghan man Malachy Traynor runs a chicken farm in Mullaghduff. He is also an M&S Select Farmer, who supplies higher welfare, slower-reared Oakham Gold fresh chicken to the British chain. 'His chickens are fed a multigrain diet and are a unique, slower growing breed,' an M&S spokesperson explains. 'This allows them a much better quality of life, with more space to roam, enabling them to be more active and fully express their natural behaviours.' Co. Monaghan based Oakham Gold chicken farmer Malachy Traynor, his mother Mary Traynor and M&S Food Ambassador Mark Moriarty (Pic: M&S Ireland) Mr Traynor's family farm, which is dedicated to animal welfare, has been supplying M&S with Oakham Gold chicken since 2022 – making them the first national retailer in Ireland to exclusively offer his premium, higher-welfare product. His farm is the focus of the first instalment of M&S's new Farm to Foodhall advertising campaign. In it, M&S Food Ambassador Mark Moriarty visits M&S Select Farms across Ireland, to showcase how producers are delivering the 'highest quality Irish produce'. 'It was a pleasure to visit Malachy at his farm in Monaghan, where quality meets tradition,' Mr Moriarty said this week. 'I got to see firsthand the care and attention that goes into raising Oakham Gold chicken and how important family is to the success of this farm.' He added: 'It's farmers like Malachy that ensure that customers have access to top-quality products when they shop in M&S.' Laura Harper, Trading Director for M&S Ireland and Northern Ireland, said their new campaign 'champion the incredible work' of their farmers in Ireland. 'We are delighted to share the story of Malachy Traynor's farm in County Monaghan, highlighting how his welfare-based approach guarantees our customers delicious tasting and trusted chicken every time,' she added. 'Whether it's higher welfare, slower-reared chickens from Irish farms, dairy products like artisan cheeses, or fresh fruits and vegetables grown on Irish soil, customers can enjoy the very best of what Ireland has to offer, sourced to highest quality standards of M&S.' Watch the advert here... See More: Chicken Farmer, Irish, MS, Malachy Traynor, Monaghan
Irish Examiner
2 days ago
- Irish Examiner
M&S 'working hard' to restore online orders for Irish customers following hack
Marks & Spencer said it is "working hard" to resume online orders for Irish customers following a crippling cyber attack after reopened its website to shoppers in Britain on Tuesday. The retailer was forced to halt internet orders in April amid heavy disruptions caused by the attack. M&S halted orders on its website over the Easter weekend, and was also left with some empty shelves after being targeted by hackers. Customer personal data - which could have included names, email addresses, postal addresses and dates of birth - was also taken by hackers in the attack. A ransomware gang known as DragonForce claimed responsibility for the hack. M&S said on Tuesday a selection of its best-selling fashion ranges and new products for available for home delivery to England, Scotland and Wales. Online shoppers on the island of Ireland face a longer wait, however. "We are working hard to resume online orders for our valued customers in the Republic of Ireland as quickly as we can. Meanwhile, M&S fashion, home and beauty is available to shop in our stores. We are grateful to our customers for their continued support," an M&S spokesperson said. M&S revealed last month that the hack will cost the company around £300m (€354m). M&S chief executive Stuart Machin said on reporting annual figures in May that hackers gained access to the company's IT systems through a third party. Mr Machin said the problems may not be fully resolved until July. "We have to be vigilant and lucky every day — threat actors only have to be lucky once," Mr Machine said. "We didn't leave the door open, this wasn't anything to do with underinvestment. Everyone is vulnerable. For us, we were unlucky on this particular day through some human error." While its 565 stores have been able to remain open and trade throughout, contactless payments were impacted initially - while there was also some stock availability issues as it had to temporarily switch to manual processes following the attack. M&S said that while the incident is likely to drag its group operating profits down this year, it expects this to be reduced through cost management, insurance, and other reactions. The company suggested it could reduce the impact of the attack by as much as "half". Shares in M&S lifted 3% in Tuesday morning trading.
The Journal
2 days ago
- The Journal
Irish Marks and Spencer online deliveries unavailable as company resumes online orders in UK
MARKS & SPENCER HAS reopened its website to UK customers after it was forced to halt online orders in April following a damaging cyber attack, but has not yet announced when it will resume operations on the Irish site. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. In a statement published on social media, M&S managing director of clothing, home and beauty John Lyttle said: 'More of our fashion, home and beauty products will be added every day, and we will resume deliveries to Northern Ireland and Click and Collect in the coming weeks. 'Thank you sincerely for your support and for shopping with us.' It followed a major cyber attack in April that has seen the group face heavy disruption. M&S halted orders on its website over the Easter weekend, and was also left with some empty shelves after being targeted by hackers. Customer personal data – which could have included names, email addresses, postal addresses and dates of birth – was also taken by hackers in the attack. M&S revealed last month that the hack was caused by 'human error', and would cost it around £300m (€355m). Advertisement The Irish website today. Marks and Spencer Marks and Spencer Chief executive Stuart Machin said on reporting annual figures in May that hackers gained access to the company's IT systems through a third party. He said at the time: 'We didn't leave the door open, this wasn't anything to do with under-investment. 'Everyone is vulnerable. For us, we were unlucky on this particular day through some human error.' While its 565 stores have been able to remain open and trade throughout, contactless payments were impacted initially – while there was also some stock availability issues as it had to temporarily switch to manual processes following the attack. M&S said the incident is likely to drag its group operating profits down by around £300m (€355m) this year, but it expects this to be reduced through cost management, insurance and other reactions. The company suggested it could reduce the impact of the attack by as much as 'half'. Shares in M&S lifted 3% in Tuesday morning trading. The website has been open for browsing only since the hack, with the group confirming last month that online sales and profits in its fashion, home and beauty business have been 'heavily impacted' by the disruption. The Irish website carries the message, 'We have paused online orders. Products remain available to browse online and stores are open'. Machin recently said the problems may not be fully resolved until July.
