Ireland’s AIB construction PMI declined to 48.0 in October 2026 from 50.4 in September, signaling the first contraction in construction activity in four months. The contraction came amid lower output across each of the three types of construction monitored, alongside a reduction in new orders. Commercial and civil engineering also returned to contraction, joining housing. In response to the fall in new orders, firms lowered their employment for the second straight month as well as purchasing and use of subcontractors. Input costs rose due to higher fuel prices, although inflation eased from September. Higher input prices and falling new orders led construction firms to scale back their purchasing activity for the first time in three months, with input buying falling at the fastest pace since August 2022. Meanwhile, delivery times continued to lengthen. Finally, business sentiment weakened to a six-month low amid concerns about the impact of price rises on customer demand.