The AIB Ireland Construction PMI rose to 48.1 in September 2025, up from 45.9 in August, signaling the sixth consecutive monthly contraction in the sector. However, the latest reading indicated the mildest downturn since June, supported by a near-stabilisation in new orders. Housing and civil engineering activity continued to decline, with residential projects falling sharply — the fastest drop in two and a half years. Meanwhile, commercial activity rose slightly, marking its first increase in three months. In response to easing workloads, firms scaled back staffing levels, posting the first back-to-back reductions in employment since late 2022, while input buying declined for the fourth straight month. Lead times lengthened solidly, though to the least extent since May, amid higher fuel costs. On prices, input cost inflation accelerated, driven by rising fuel and raw material prices. Finally, sentiment improved to a four-month high, supported by expectations of stronger new orders.