The construction sector has shrunk further in Northern Ireland as part of a wider private sector downturn, extending the summer’s economic malaise into the autumn, according to a new report.
Ulster Bank’s Purchasing Managers’ Index (PMI) found that activity fell in September in all four sectors covered by the survey (manufacturing, construction, retail trade and services) as new orders they fell for the fourth month in a row.
However, the largest drop occurred in construction, which recorded the most significant drop in orders so far this year.
The headline numbers for the index show business activity in the construction sector at 42.3 and new business at 35.1, up from 45.4 and 40.1 respectively in August (a score above 50 indicates that activity is expanding while a score below 50 indicates that it is slowing).
Construction firms also hit a one-note note in their expectations for the rest of the year, anticipating that demand would fall further while organizations in other sectors had their hopes up for a recovery.
Ulster Bank chief economist Richard Ramsey said the figures showed that the loss of momentum experienced in Northern Ireland’s private sector over the summer had carried over into the autumn months.
“In September, all four sectors recorded declines, but the pace of contraction was most significant in construction, which posted its biggest monthly decline in orders this year,” he said.
“Despite the recent drop in customer demand, manufacturers, retailers and service sector companies remain more optimistic about the outlook over the next 12 months.
“Conversely, construction companies expect demand conditions to deteriorate further during the year.”
On a more positive note, employment in the construction sector rose alongside manufacturing and retail as efforts continued to expand capacity and fill previously vacant positions.
