Housing construction activity declined during August, according to the latest AIB Construction Purchasing Managers’ Index.
The housing activity index fell to 46.9 during the month, below the 50-point level which separates growth from contraction.
Overall construction activity continued to increase, but at a much slower rate, with the headline index dropping from 53 in July to 50.7 in August.
Commercial construction was the only major category to record growth, at 51.4, while civil engineering activity was broadly unchanged at 49.9.
Employment across construction increased for the tenth consecutive month, although the pace of job creation was the slowest since November 2025.
Construction firms also reported further increases in costs, particularly for oil and metals.
However, new orders increased for a second consecutive month and confidence among firms about activity over the coming year reached a six-month high.
