Residential construction activity fell by 16.2 percent between July and September compared to the previous three months.
Residential construction also fell 2.8 percent quarter-over-quarter, the Central Statistics Office said today.
Civil engineering — the construction of highways and other infrastructure such as water projects or power lines — has recovered to pre-pandemic levels, up 10.3 percent in the third quarter compared to the second.
Overall, the volume of construction activity is still 12.3 percent below pre-pandemic levels.
However, the value of work done is up 6.1 percent since the third quarter of 2019.
Construction activity – including residential and non-residential but excluding civil engineering – is down 15.4 percent from pre-pandemic levels.
The CSO data comes on the same day that AIB announced a decline in its manufacturing index for the first time since the pandemic peaked in May 2020.
A sixth monthly drop in new orders has pushed production down, bringing Irish manufacturers in line with the euro-zone and the UK, where economic growth has already started to turn negative.
AIB Chief Economist Oliver Mangan said sentiment among manufacturers is at a two-year low “as fears of a recession mount.”
Davy Stockbrokers warned in a statement that the figures could portend future implications for Ireland’s economic growth.
“This poses a risk to our forecast that Ireland’s resilient export sector will keep GDP growth in positive territory in 2023,” Davy Stockbrokers said in a note.
All official forecasts suggest that gross domestic product – often distorted by the large multinational sector – is slowing but sure to stay in positive territory at over 3 percent next year
However, domestic economic growth is expected to slow to near zero, according to government forecasts.
https://www.independent.ie/business/irish/home-building-slows-162pc-in-three-months-to-september-42188143.html Home construction slows 16.2 percent in three months to September