Irish construction index sees record fall

Activity in the construction sector contracted at a record pace in January, according to the latest Ulster Bank Construction Purchasing Managers Index.

The construction index fell to 35.3, the lowest since the series began in June 2000, from 35.7 in December.

Activity declined in the three construction areas assessed by the survey - housing, commercial and civil engineering.

The gauge of housing fell to 23.1 from 23.5. A reading below 50 indicates contraction. The index measuring commercial construction fell to 42.8 in January from 45.6 in December.

The housing sector in Ireland has fallen into a slump on the back of increased borrowing costs and concern that property prices will decline for a second year in 2008.

© 2008 ireland.com