The construction sector continued to expand in April as growth in activity and new business both reached multi-year highs. Firms responded to increased workloads by raising their staffing levels at one of the fastest rates in the series history according to the Ulster Bank Construction Purchasing Managers’ Index.

Business confidence was at its strongest level since the survey began in June 2000. The index – a seasonally adjusted index designed to track changes in total construction activity – rose to 63.5 in April from 60.2 in the previous month. A level above 50 indicates expansion. Activity has now increased in each of the past eight months, with the latest expansion the sharpest since December 2004.

“The results of the April survey of the Ulster Bank Construction PMI point to a further strengthening of the recovery in Irish construction last month. There was a marked acceleration in overall activity in April as the headline PMI reached its highest level since the end of 2004,” said, Simon Barry, chief economist Republic of Ireland at Ulster Bank.

“The strengthening was particularly evident in housing and commercial activity where the pace of growth also quickened to multi-year highs.”