CRH said yesterday that it spent €231 million on acquisitions and capital expenditure in the first half, well below its usual level of spending on development.

Of this figure, capital expenditure on seven large projects accounted for €63 million, leaving the building materials group's acquisition spend at just €168 million in the first six months of the year.

This compares with acquisition spending of €344 million in the first half of 2004 and €243 million in 2003.

"The pace of spend to date in 2005 has been somewhat lower than in recent years," chief executive Liam O'Mahony said.

"However, we continue to work on opportunities for acquisitions across all our operations and remain committed to completing transactions at prices that will contribute to long-term value creation for our shareholders."

While low, analysts said the level of spending had been well flagged at the annual meeting in May. According to Goodbody Stockbrokers, it reflected "an environment where price expectations are high and therefore CRH is finding it hard to find long-term value".

Of the total expenditure, 35 per cent was in Europe with 65 per cent in the Americas.

CRH spent €108 million on 13 projects in its US products and distribution business, including acquisitions in the Carolinas and Canada along with the purchase of a Toronto-based window and curtain wall manufacturer.

Its US materials business spent €41 million on nine projects including four deals in Ohio and acquisitions in Idaho, Utah, Iowa and Wyoming.

In Europe, the group spent €47 million on six deals in its products and distribution business while its European materials business spent €35 million on three projects.

These included the purchase of 49 per cent of a concrete paving producer.