12-05-2025
Irish builders increase output in April despite concerns over US trade policies
Construction activity in Ireland grew again last month but at a slower pace as companies responded to sustained new order growth.
The AIB Construction PMI also shows employment and purchasing activity increased last month, while companies remained optimistic regarding the year-ahead outlook, despite some worries regarding the impacts of US trade policy.
The index posted 52.4 in April, down from 53.9 in March but still above the 50.0 no-change mark and signalling a second consecutive month of growth in Irish construction activity.
According to the survey, the companies that saw activity increase linked this to improving customer demand and an associated increase in new orders.
The rise in construction activity was broad across the three categories, residential, commercial and civil.
The fastest increase was in commercial activity, which expanded for the third month running and at a solid pace.
The slowest increase in activity was on housing projects, but growth has now been sustained in the residential category for eight months running.
AIB chief economist David Murphy said the improved demand conditions were reflected in new orders expanding for a third straight month.
This backdrop of new projects saw firms continue to increase their staffing levels. Indeed, the pace of employment growth accelerated in April.
"Construction sector firms retained an optimistic view on the prospect of increasing activity levels over the coming 12 months.
"However, some firms did reference the potential drag on activity levels from US trade policy as being a source of concern," Mr Murphy said.
On the price front, firms recorded a further sharp rise in their input costs during April.
Improving demand for materials often resulted in suppliers hiking their prices in April, with the rate of input cost inflation remaining sharp and above the series average during the month. Subcontractor rates also increased rapidly, and at the fastest pace for a year
