Activity in the construction sector rose sharply in June, extending the current sequence of growth to ten months, according to a survey of purchasing managers published by Ulster Bank.

The latest rise in the bank’s seasonally adjusted index of construction sector activity was supported by growth in orders, which led to increases in employment and purchasing activity.

The purchasing managers’ index (PMI) recorded a reading of 59.9 in June, down from 60.2 in May but still well above the 50 level that marks the threshold between contraction and expansion.

"Activity trends in Irish construction firms remained robust at the end of the second quarter," said Simon Barry, Ulster Bank's chief economist for the Republic.

Purchasing managers’ index

“The headline PMI eased back a touch last month but still remains at a very elevated level, consistent with ongoing solid improvement in the sector, albeit from the very depressed levels reached in the downturn,” he said.

“Looking ahead to the second half of the year, near-term prospects for the Irish construction sector continue to look favourable,” Mr Barry added.

The volume of orders made by construction firms has now risen for 12 consecutive months, while staff levels increased for the tenth month in a row, but at a more moderate pace than in previous months.