Analysts are watching whether the huge turmoil caused by the Ukraine war which has further driven up energy costs so soon after the fallout on global supply chains from the Covid crisis.
Surging costs and prices are beginning to weigh on construction activity, according to purchasing managers working in the industry.
The BNP Paribas Real Estate Ireland Construction Index showed that costs rose at “near record” levels in April and new orders fell back for the first time since March last year.
Two of the three components of the industry, commercial and housing activity continued to expand but civil engineering contracted in the month.
“As well as impacting demand at the start of the second quarter, inflationary pressures also acted to depress confidence in the year-ahead outlook,” the survey found.
“Sentiment ticked up from the 17-month low seen in March, but was still the second-lowest in the past year-and-a-half and below the series average,” it said.
Business Confidence
Business confidence was also held back by worries over inflation, the BNP Paribas survey found.
Analysts are watching whether the huge turmoil caused by the Ukraine war which has further driven up energy costs so soon after the fallout on global supply chains from the Covid crisis.
The BNP Paribas survey had better news in terms of employment which continued to grow in the month, “albeit at softer rates than seen around the turn of the year”.
The overall index eased to 52.5 in April, where a reading of 50 marks the difference between expansion and contraction.
Housing and commercial activity posted readings of 56 and 55.7, respectively, but, at 43.6, civil engineering activity contracted.
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