The Irish construction sector continued to expand in October but at a weaker rate than in September, according to an Ulster Bank survey.

The latest monthly construction purchasing managers' index from the bank gave an overall reading of 59.2 on a composite index, down from 59.7. A survey reading above 50 from a panel of purchasing managers reflects expansion in business while a reading below that level indicates that activity in the sector is falling back.

"Although weaker than in September, growth of activity in the Irish commercial area remained the sharpest of the three broad construction sub-sectors in October," Ulster Bank said.

"Strong growth was also recorded in civil engineering. Housing construction rose only modestly compared with the previous month, although the rate of increase picked up slightly from September's 25-month low."

The bank said robust growth in new orders again underpinned the latest rise in activity.

Purchasing managers said that higher underlying demand and improved marketing had been the primary reasons behind the increase in new business levels.

"The latest increase in new orders encouraged a further rise in employment in the Irish construction sector. However, the rate of workforce expansion eased to a sixteen-month low, as the recent strong increases in input costs limited job-creation."