Irish Construction Activity Expands for Third Month as Growth Slows in September 2026
Construction activity in Ireland grew for a third consecutive month in September 2026, though the pace of expansion slowed to its softest rate in the current sequence. The purchasing managers' index eased to 50.4 from 50.7 in August, supported by a modest increase in new orders across commercial projects and civil engineering.
The slowdown highlights mixed performance across different sectors. While civil engineering bounced back into growth and commercial building expanded for a third month, residential construction experienced another notable contraction. At the same time, building firms trimmed headcount for the first time in 11 months, while rising fuel and transportation charges pushed input cost inflation to a three-month high.
Looking ahead, industry sentiment remains in positive territory despite dropping from August's six-month high. Builders continue to draw confidence from a healthy pipeline of upcoming projects, but persistent supply chain delays and accelerating cost pressures could weigh on future momentum.
Key points
- Ireland's construction purchasing managers' index fell to 50.4 in September 2026 from 50.7 in August.
- Civil engineering activity returned to growth while commercial construction expanded for a third straight month.
- Residential construction continued to decline solidly during the month.
- Employment in the construction sector fell for the first time in 11 months.
- Input cost inflation reached a three-month high due to rising transportation and fuel prices.
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How we writeDisclaimerQuestions and answers
What was the Irish construction PMI in September 2026?
The Irish construction purchasing managers' index stood at 50.4 in September 2026, down from 50.7 in August, indicating a slight expansion in activity.
Why did Irish construction growth slow down in September 2026?
Growth slowed due to a continued fall in residential construction activity, input cost inflation accelerating to a three-month high, and employment declining for the first time in 11 months.
Which Irish construction sectors performed best in September 2026?
Civil engineering returned to growth after previously declining, and commercial projects grew for the third month in a row, offsetting weakness in residential building.