Despite the February Ulster Bank Purchasing Managers Index (PMI) showing activity in Irish construction fell for the ninth consecutive month to its lowest level since the survey began in 2000, it suggests there is growing confidence starting to appear in the market. This also suggests a change in the current outlook for Irish construction jobs with several companies expected to increase their levels of activity.

The Ulster PMI showed that activity levels measured 35 for February. This should be a worrying factor in an Index where a measure above 50 indicates expansion. But the rate of decline is falling. The two previous months had shown declines to 35.3 in January from 35.7 in December. The Index measured 42.0 in November.

Ulster's chief economist Pat McArdle says confidence in the sector appeared to be picking up. He states: "The fall in February was marginal, when compared to the decline in activity in January.

"In broad terms, the sector again contracted sharply but the rate of decline did not accelerate. This reflected a slightly better tone in a number of areas," he said.

Data for February signaled a return to optimism amongst constructors, with company expansion plans expected to lead to activity growth. However, the degree of positive sentiment still remains well below the survey average.

The Index indicated that the decline in housing was less than in any month since last September. McArdle commented, "Commercial activity, too, was slightly less negative but there was a further marked deterioration in civil engineering.

"The somewhat less negative overall tone was also evident in new business volumes and employment, giving some hope that it may continue next month," he said. The PMI showed civil engineering activity was 36.9, down from 47. Commercial activity was 43.7, up from 42.8 but still in negative territory. And housing activity grew to 27.5, up from 23.1. But it also remains in negative territory.