09.09.202500:08:06UTC+00Irish Construction Activity Shrinks the Most in 19 Months

The AIB Ireland Construction PMI fell to 45.9 in August 2025, down from 47.1 in July, marking the fourth straight month of contraction in the industry. This decrease was the sharpest since January 2024, primarily due to a renewed drop in new orders. For the first time in 18 months, there was a decline across all three construction categories. The decrease in new orders, coupled with cost pressures, led to a second consecutive monthly decline in purchasing activity, although this decline was less pronounced than in July. Input costs rose significantly, with inflation rates remaining above the series average. Moreover, suppliers experienced the longest delivery delays in six months, attributed to material shortages. Despite these challenges, employment grew for the sixth consecutive month, albeit at a modest pace. Looking ahead, business sentiment improved, spurred by expectations of increased housing activity, though confidence levels remained below the series average.