Figures Point to Slower Growth in Construction Output, Lead Indicators Suggest Pick-Up in Q2

30th July: While today’s national accounts show that the Irish economy is powering ahead, they do show a significant slowdown in the rate of investment growth. Capital formation grew by 4% in Q1 – the first time investment growth has dropped to single digit levels since Q2 2013. Commenting on the figures Dr. John McCartney, Director of Research at Savills said;

“The slowdown in investment is not entirely surprising given the relatively sluggish 3.3% growth in construction output during the opening three months of the year.  Indeed, this has been evident on the ground with very sluggish residential completions. However, while housing supply will remain a major issue we expect overall construction output to improve as the year goes on. The construction sector PMI has shown a significant pick between April – June and there is currently just under 130,000 sq m of new office development and refurbishment works ongoing”.