Ireland's construction sector slowed in December 2025, but showed signs of recovery with rising orders and hiring.

Ireland's construction sector contracted in December 2025, with the AIB PMI at 48.4, up from 46.7, indicating a slower decline. Activity fell across all sub-sectors, though residential construction saw its mildest drop in months. New orders rose for the first time in five months, and firms increased hiring, purchases, and subcontractor use. Input costs surged, especially for metals. Business confidence reached its highest level in nearly a year, signaling cautious optimism for a recovery in 2026.