Irish House Building Hits One-Year High Amidst Rising Fuel Costs and Supply Chain Woes
Translated from English, summarized and contextualized by DistantNews.
TLDR
- Irish house building saw its fastest growth in a year during March, despite rising fuel costs.
- Increased inflationary pressures and supply chain issues, including material shortages and driver difficulties, lengthened lead times.
- Business sentiment eased due to Middle East conflict uncertainty, but firms anticipate future activity growth based on positive demand expectations.
The Irish construction sector is showing robust signs of recovery, with house building reaching a one-year high in March. This surge in activity, detailed in AIB's latest construction PMI data, indicates a strengthening momentum in the residential sector, marking the second consecutive month of growth.
House building registered a sharp increase last month, with the rate of growth hitting a one-year high even as higher fuel costs intensified inflationary pressures, according to a new report from AIB.
However, the positive output figures are tempered by intensifying inflationary pressures, largely driven by escalating fuel costs. These higher costs have not only impacted suppliers' delivery times but also contributed to material shortages and a scarcity of drivers, leading to significantly extended lead times for construction projects.
The bank’s latest construction PMI data pointed to improving growth momentum in the Irish construction sector during March.
Despite a dip in business confidence attributed to geopolitical uncertainty stemming from the Middle East conflict, the outlook remains cautiously optimistic. Firms anticipate a rise in overall activity, buoyed by solid demand expectations. This suggests a resilience within the sector, with companies poised to expand employment and purchasing activity to meet anticipated workloads.
Inflationary pressures intensified, however, often due to higher fuel costs, which also impacted suppliers’ delivery times, with shortages of materials and difficulties finding drivers also contributing to a marked lengthening of lead times.
DistantNews Editorial
Originally published by Irish Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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