Construction output falls in first three months of the year

The volume of production in Irish construction decreased by 2.4% in the first three months in 2022 when compared with the final three months of 2021, latest data from the CSO shows. .

However, on an annual basis, volume increased by 23.0% in Quarter 1 2022.

The drop in the first three months comes despite a ramping up of construction to make up for lost time due the closure of construction sites during Covid restrictions last year. 

"Activity in the construction sector remains lower than pre-pandemic levels with production volume in Quarter 1 2022 down 14.6% compared to Quarter 1 2020," said Sorcha O'Callaghan, statistician in the Business Statistics Division.

However, compared to the first three months of last year when Covid-19 restrictions on building sites were in place, the volume of activity between January and March this year was up 23%.

"Non-essential construction sites were closed in early Quarter 1 2021 and reopened in a phased manner in Quarter 2 2021," said Ms O'Callaghan.

"This should be kept in mind while interpreting the annual sectoral changes."

The construction sector has come under increased pressure due to the dramatic rise in costs of materials.

 Supply issues have also emerged, in part due to the Russian invasion of Ukraine and ensuing war there.