Published Date : Sep 14, 2015
The construction sector has observed a sluggish growth in the rate of activity in August; the condition persists for the second month in a row. In the Ulster Bank Construction Purchasing Manager’s index, the reading for the month of August came down to 56.5 from a reading of 59.1 in July.
A reading above 50 in this index represents growth of the construction sector while a reading below 50 represents decline.
Representatives of the Ulster Bank have said that the total output in the global construction sector has seen a continuous rise over the past two years, however the rate of expansion has eased from an level that denoted a near record high in the month of June.
The Index represents three areas of the building industry: civil engineering, commercial engineering, and residential engineering. In the August month’s results of this index, the commercial engineering sector appeared as the best performing sector of the three as it posted a substantial monthly rise, albeit being the weakest sector since the month of March.
The sector of civil engineering also exhibited decline in activity successively for the second month. Also, although the rate of contraction was modest, it was slightly sharper than that exhibited by the sector in July.
The index stated that the growth of the total activity in the building industry was driven by expansion in the business sector. The rate of job creation also remained very minutely changed as compared to the earlier month and remained strong. Nearly 24 per cent of the respondents for the index said that they had taken extra employees and companies linked the added number of employees to the factor of increased workloads in the industry.