The growth of the construction increases the construction costs

  • The growth of the construction increases the construction costs
    Independent.t. E.
    The construction sector in Ireland is now so fast that reported a shortage of some construction materials and services grows.
    https://www.independent.ie/business/irish/construction-growth-raises-building-costs-37209246.html
    https://www.independent.ie/incoming/article37208959.ece/56eb0/AUTOCROP/h342/PL35333461Construction%20sit.jpg

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The construction sector in Ireland is now so fast that reported a shortage of some construction materials and services grows.

This has led to higher prices for steel, insulation and transport.

The index of the Ulster Bank construction purchasing managers ‘ (PMI), which tracks construction activity, rose in July from 58.4 to 60.7 in June. Any reading above 50 indicates expansion, any figure below, contraction.

Respondents noted that housing is now particularly strong, albeit still significantly below the level needed to meet demand.

However, the PMI for construction especially hit 63.9 in July. This is one of the highest in the sector read in 18-year history of the study.

The latest data from the Central statistical office shows that the number of house completions hit 3,525 in the first quarter of 2018, up 26.9 PC year-on-year.

Activities in the commercial sector, which includes offices and warehouses, for example – rose sharply last month compared with June, according to the latest data.

In the construction sector also returned to growth after two consecutive months of decline.

“Companies continue to benefit from sharp growth in new business flows, as they report a constant increase in customer demand for their services,” said Simon Barry, chief economist Republic of Ireland with Ulster Bank.

“In turn, the buoyancy of the activities and samples of orders continues to maintain a high demand for construction workers, with the rate of creation of new jobs, remaining significant in July, albeit not quite as exceptionally strong in June,” he added.

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