Residential construction slowed in May as inflation bites

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Residential construction slowed in May as inflation bites
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Price increases hitting apartment developments before they can start, says report

The institute adds that apartments are the very type of building that Government is keen to encourage in its efforts to tackle the now years-old housing crisis.Construction price inflation hit 14 per cent year-on-year by the end of February, according to official estimates, although more recent trends indicate the overall rate is easing.

Housing Activity slid to 43.9 in May, the eighth consecutive month that residential building declined, the index shows. However, labour and finance costs continue to rise as the industry ups wages to lure workers and lenders pass on central bankers’ interest rate hikes. Civil engineering, mostly large, State-funded infrastructure projects, was the weakest performer, slumping to 43.9.

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