DAVY VIEW

This morning’s Irish Construction PMI at 45.6 in July, signalling a fresh contraction after stability in June, is surprising. The readings are not consistent with the recent pick-up in housing starts. Also, firms expanded their employment in July and were still upbeat on the 12-month outlook. That said, higher interest rates will eventually weigh on fresh apartment projects and office development looks set to fall back sharply this year and next.