The AIB Ireland Construction PMI dropped to 47.1 in July 2025, down from June’s 48.6, marking a third consecutive contraction in the sector. It also represented the steepest decline since December 2023, as new orders grew at the slowest pace since February amid reports of customers delaying decisions due to economic uncertainty. Both housing and civil engineering activity recorded contractions, while the commercial sector saw activity increase for the sixth month running, albeit at a modest pace — the weakest in this sequence. Employment increased for the fifth month in a row, but constructors scaled back their purchasing activity for the first time since January. Meanwhile, suppliers’ delivery times lengthened by the most in three months, with reports citing staff shortages at vendors. On the pricing front, input cost inflation accelerated. Looking ahead, business sentiment weakened to a 32-month low amid uncertainty around U.S. trade policy and geopolitical tensions.