The rate of increase in civil engineering activity rose sharply last month, the fastest rise recorded in eight years, according to figures released yesterday (December 8) by Ulster Bank. For the second month running, all three categories of construction saw rises in activity, with rises in expansion on commercial projects and housing also recorded. According to the Ulster Bank Construction Purchasing Managers Index (PMI), growth in the Irish construction sector remained elevated in November as activity, new orders and employment all rose sharply again. Activity has now risen in each of the past 15 months. Commenting on the survey, Simon Barry, chief economist Republic of Ireland at Ulster Bank described November as “another strong month for the Irish construction sector”. “Activity continued to expand at a very solid rate last month, though at a slightly slower pace than in October,” he said. “This brings the run of monthly activity gains to 15 as the sector’s recovery continues to gain traction, albeit from the very depressed levels reached during the downturn.” Activity trends are being underpinned by substantial increases in new business flows, with companies attributing the latest expansion to general improvements in the construction market and stronger economic confidence. “Indeed, overall optimism among Irish construction firms improved sharply in November in reaching a new record high for the survey which began in June 2000,” Barry added. “Almost three in four firms expect activity to increase over the coming year, reflecting perceptions that the broader economic environment is set to continue to improve.”