Construction Slump Decelerating, Says Economist

The rapid decline in building work is easing off according to a leading economist.

Pat McArdle, a top economist with the Ulster Bank, said contraction in the industry has decelerated towards the end of November.

Launching the bank's latest construction purchasing manager's index, Mr McArdlw said last month recorded a 32.1, compared to 31.2 in October.

He said: "The construction indices essentially moved sideways in November, indicating that the sector continues to contract sharply, but that the rate of decline is no longer accelerating.


"This reflects very low activity in housing, in particular, and this situation is unlikely to change anytime soon, given the overhang of unsold property and the lack of activity," said the economist.

However, staffing levels in the construction sector has continued to fall a 'marked' rates, despite jobs shedding slowing down.

Mr McArdle claimed there is some positive news for the sector.

"The only piece of comfort in the indices is the continued fall in input prices. This index is now well into negative territory and reached a new series low in November.

"The vast bulk of inputs are now falling in price, including labour, fuel, steel and timber and, of course, anything sourced in the UK. Further falls are expected," he added.

This is the third month in a row in which prices have fallen.

(PR/JM)