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Ireland’s Construction Slump Eases as Contraction Enters Sixth Month

November 11, 2025 Victoria Sterling Business
News Context
At a glance
  • (Alliance News) - Ireland's construction activity continued to decline in October, although a notable shift occurred with commercial construction returning to growth,‍ according to a report​ released by...
  • ​ The AIB Ireland‍ construction Purchasing Managers' Index (PMI) registered at 48.1 in October,an increase from 43.7 in September.
  • A PMI ‍reading above 50.0 signifies expansion, while a reading below 50.0 indicates contraction.
Original source: global.morningstar.com

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Ireland’s Construction Sector Continues Contraction in October, Commercial Activity a Bright Spot

Table of Contents

  • Ireland’s Construction Sector Continues Contraction in October, Commercial Activity a Bright Spot
      • At a ​Glance
    • PMI Breakdown: Commercial Construction leads the Way
    • Historical PMI Data & Context
      • Editor’s ​Analysis

November 11, 2025, 04:03:29 AM PST

(Alliance News) – Ireland’s construction activity continued to decline in October, although a notable shift occurred with commercial construction returning to growth,‍ according to a report​ released by S&P Global on Tuesday, November 11, 2025.

​ The AIB Ireland‍ construction Purchasing Managers’ Index (PMI) registered at 48.1 in October,an increase from 43.7 in September. This indicates a continued, though lessening, contraction in the ⁤sector.
⁤ ‌

A PMI ‍reading above 50.0 signifies expansion, while a reading below 50.0 indicates contraction.

At a ​Glance

  • What: Continued contraction in Ireland’s construction sector.
  • Where: ‌ Ireland
  • When: October⁤ 2025 (data released November‌ 11, 2025)
  • Why it Matters: The⁣ construction sector is a key indicator of economic health; continued contraction signals⁤ potential slowdown.
  • What’s Next: Monitoring future PMI data will ​be crucial to assess the sector’s trajectory.

PMI Breakdown: Commercial Construction leads the Way

While overall construction activity remained in contraction, the report highlighted a positive trend in commercial construction.This sub-sector experienced​ growth in October, offsetting ​declines in other areas. Further ‍details on the specific drivers of this commercial growth are needed to fully understand the shift.

The AIB‍ Ireland construction PMI‌ is based on a survey of approximately 150 construction companies. The index is designed to ​provide a comprehensive overview of activity in the construction sector.

Historical PMI Data & Context

The September PMI reading of 43.7 represented a significant decline from previous⁤ months, raising concerns about the health of the Irish construction industry.The October increase to 48.1, while still below the 50.0 threshold, offers a glimmer of hope for stabilization.

Month PMI Reading
October 2025 48.1
september 2025 43.7
August 2025 46.2
July 2025 48.5

Source: S&P Global

Editor’s ​Analysis

⁤ – victoriasterling
​ The rebound in commercial construction is​ a welcome sign,potentially driven by increased investment in office ⁢spaces or infrastructure projects. However, the continued contraction in other sub-sectors – housing and civil engineering – remains a concern.The Irish construction ⁢sector is particularly sensitive to interest rate changes and government policy, so these factors will be key to watch in the coming months. The overall economic climate in Ireland and the broader Eurozone will also play a significant role.
‌

Comments and questions to newsroom@alliancenews.com

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