According to the latest AIB Construction Purchasing Managers' Index (PMI), Irish construction activity saw a sharp slowdown in June, with the index falling to 43.5 from 47.5 in May. A reading below 50 indicates contraction. This marks the steepest decline in the sector in almost four years.
The report, released on July 14, 2026, highlighted that house building slowed at the fastest pace since August 2022. Inflation and shipping delays, exacerbated by the ongoing conflict in the Middle East, were cited as key factors. AIB Chief Economist David McNamara noted that supply chain disruptions and rising input costs continued to weigh on the sector.
Commercial activity also contracted, while civil engineering remained relatively stable. The overall outlook for the next 12 months remained positive, though confidence dipped to its lowest level in 2026. The PMI survey is based on responses from a panel of around 150 construction firms.
