The global construction industry had seen good growth over the past few months but it again lost some momentum in the month of July, nevertheless it continued to grow strongly, according to recent analyst figures.
The Construction Purchasing Managers’ Index (PMI) of Ulster Bank, an index that tracks the performance of the global construction industry on a monthly basis, saw a plunge from 65.7 in June to 59.1 in July, which indicates that while the industry is treading along a strong growth path, its pace of expansion slowed down in the last month.
The industry continued to grow in two segments – commercial building and housing. However, the industry saw a dip in overall construction activities in the sector of civil engineering in the month of July.
PMI of the Ulster Bank has 50 as its benchmark for assessing growth of the construction industry. Any reading that crosses this benchmark figure indicates that the industry has expanded while any reading below the benchmark represents that the industry has been on a negative growth rate.
According to the PMI, the sector of civil engineering reduced to 49.1 in July, meaning that the construction activity in this sector had been less as compared to the month of June, which were 60.5. The sector of house construction reached 57.3, indicating a positive growth.
The chief economist of Ulster Bank for the Republic said that the index shows a continuous robust growth in the industry in the month of July.
He added that the overall PMI index had fallen a bit in the last month, but from the readings that were seen in June and then in July, show that the overall industry is continuing on a rapid growth path.