20150714 pmi slide_pack_june_2015
TRANSCRIPT
Ulster Bank Northern Ireland Purchasing Managers Index (PMI)
Includes analysis of Global, Eurozone, UK, UK Regions, NI &
Republic of Ireland economic performance by sector
June 2015 Survey Update
Issued 14th
July 2015
Richard Ramsey Chief Economist Northern Ireland
www.ulstereconomix.com [email protected]
Twitter @UB_Economics
PMI SurveysPurchasing Managers’
Indexes (PMIs) are monthly surveys of private sector companies
which provide an advance indication of what is happening in the private sector economy
by tracking variables such as output, new orders, employment and
prices across different
sectors.
Index numbers are calculated from the percentages of respondents
reporting an
improvement, no change or decline on the previous month. These indices vary from 0 to
100 with readings of 50.0 signalling no change on the previous month. Readings above
50.0 signal an increase or improvement; readings below 50.0 signal a decline or
deterioration. The greater the divergence from 50.0 the greater
the rate of change
(expansion or contraction). The indices are seasonally adjusted
to take into consideration
expected variations for the time of year, such as summer shutdowns or holidays.
< 50.0 = Contraction 50.0 = No Change > 50.0 = Expansion
Data at a sector level are more volatile and 3‐month moving averages
have been used to
more accurately identify the broad trends.
Global output & services output growth eases to a 5- month low with manufacturing output at a 23 month low
Global Output - PMI
25
30
35
40
45
50
55
60
65
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Total Manufacturing Services
Source: Markit Economics
ExpansionC
ontraction
EZ manufacturing & services sectors growth accelerates with retail sector’s growth easing & construction still contracting
Eurozone PMIs: Output
25
30
35
40
45
50
55
60
65
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Composite (M&S) Manufacturing Services
Construction Retail No Change
Source: Markit Economics Expansion
Contraction
The Eurozone’s composite PMI signals economic growth rate accelerating in Q2 2015
EZ GDP versus EZ Composite PMIComposite excludes construction
20
30
40
50
60
70
2007 Q2 2009 Q2 2011 Q2 2013 Q2 2015 Q2
PMI Index
-3-2.5-2-1.5-1-0.500.511.52
GDP % Q/Q
GDP Q/Q PMI
Source: Bloomberg & Markit
EZ Q1-15 GDP 0.4%
The RoI, UK & NI slip down the manufacturing output growth rankings in June with BRICS not faring well
PMIs: Manufacturing Output June 2015
35 40 45 50 55 60 65
AustraliaS.Korea
BrazilTaiwanGreece
IndonesiaTurkey
DenmarkN.Zealand*
RussiaChina
FranceSingapore
JapanUKNI
GlobalS.AfricaAustriaMexico
CanadaVietnam
IndiaEU
GermanyEZUS
SwitzerlandSpain
ItalyIreland
NetherlandsCzech Republic
Poland
Source: Markit Economics Output Indices, *May
UK, RoI & NI
€
The Republic of Ireland, the UK & Spain posted the fastest rates of service sector output growth in June
PMIs: Services Output June 2015
35 40 45 50 55 60 65
BrazilIndia
RussiaEmerging Markets
JapanChina
AustraliaItaly
NIGlobal
GermanyFrance
EZDeveloped Markets
US*EU
SpainUK
Ireland
Source: Markit Economics Output Indices
€
All economies bar Spain saw growth accelerate in June
Composite PMIs (Manufacturing & Services ** Excludes Construction**)
25
30
35
40
45
50
55
60
65
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Source: Markit Economics PMIs
Contraction
Expansion
US, China & Japan PMIs posted a slowdown in growth in June. UK & the EZ saw a pick-up in their growth rates
Composite PMIs (Manufacturing & Services ** Excludes Construction**)
30
35
40
45
50
55
60
65
Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Eurozone US (Markit) China Japan UK
Source: Markit Economics PMIs, US begins Jul-11
ExpansionC
ontraction
EZ, US & Chinese manufacturing PMIs improve in June
Manufacturing PMIs
25
30
35
40
45
50
55
60
65
Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
US (ISM) China Japan Eurozone No Change
Source: Markit Economics
Contraction
Expansion
Emerging Markets PMI hits a 6-year low as Brazil’s recession deepens
Composite PMIs (Manufacturing & Services ** Excludes Construction**)
30
35
40
45
50
55
60
65
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Brazil Russia India Emerging Markets
Source: Markit Economics
Contraction
Expansion
Australia’s services sector growing again but manufacturing output is contracting at its fastest rate since July 2013
Australia - PMI
30
35
40
45
50
55
60
65
Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Manufacturing Services No Change
Source: Markit Economics PMIs
Contraction
Expansion
NI posts its 2nd consecutive month of private sector growth but pace of growth eases & still lags behind the UK & RoI
Private Sector Business Activity - PMIs
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
NI UK RoI
Source: Markit & Ulster Bank NI PMI50 = threshold between expansion / contraction
Expansion
Contraction
**PMI Surveys Exclude Agriculture & Public Sector**
PMI suggests growth in DFP’s private sector composite index during 2014 but recovery stalls in Q1-15 with a modest rebound in Q2-15
NI Private Sector Output Index Versus NI PMI
-6-5-4-3-2-1
012345
2005 Q2 2007 Q2 2009 Q2 2011 Q2 2013 Q2 2015 Q2
NICEI Q/Q%
30
35
40
45
50
55
60
65PMI NICEI Left Hand Scale PMI Right Hand Scale
Source: DFP NI Composite Economic Index (NICEI) & Ulster Bank / Markit Economics NI PMI,Q3 2014 is latest data for NICEI.
50 mark is the threshold for expansion / contraction with PMI Expansion
Contraction
2014 was the first year in 7 years that business activity, new orders, employment & export orders all expanded
NI Private Sector Performance (PMI)
30
35
40
45
50
55
60
2007 2008 2009 2010 2011 2012 2013 2014
PMI Index
Business Activity New Orders Employment Export Orders ExpansionC
ontraction
Source: Markit Economics & Ulster Bank NI
NI recovery took hold in H2-13, all indicators improved in H1-14 & eased in H2-14 with a further slowdown in H1-15
NI Private Sector Performance (PMI)
30
35
40
45
50
55
60
65
2006
H220
07H1
2007
H220
08H1
2008
H220
09H1
2009
H220
10H1
2010
H220
11H1
2011
H220
12H1
2012
H220
13H1
2013
H220
14H1
2014
H220
15H1
PMI Index
Business Activity New Orders Employment Export Orders
ExpansionC
ontraction
Source: Markit Economics & Ulster Bank NI PMI
NI firms report a marked pick-up in new orders but pace of job creation eases significantly
NI Private Sector ActivityMonthly
30
35
40
45
50
55
60
65
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Business Activity New Business Employment
Source: Markit Economics & Ulster Bank NI PMI
ExpansionC
ontraction
UK & RoI continue to report strong order books while NI firms report their fastest rate of growth in 9 months
Private Sector New OrdersMonthly
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
NI UK RoI
Source: Markit Economics & Ulster Bank NI
Orders increasing
Orders C
ontracting
Backlogs of work continue to grow in the UK & RoI with NI posting its 1st monthly rise in backlogs in 9-months in June
Private Sector Backlogs3 month moving average
30
35
40
45
50
55
60
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
NI UK RoI
Source: Markit Economics & Ulster Bank NI PMI
Increasing D
ecreasing
Export orders rise for the first time in 8 months with £/€ exchange rate still impacting on price competitiveness
NI New Export BusinessMonthly
20
30
40
50
60
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
New Export Orders No Change
Source: Markit Economics & Ulster Bank NI PMI
Expansion
Contraction
PMI signalled a slowdown in the pace of jobs growth in H2-14 but rebounds in H1-15
NI Employment: PMI v QES**
35
40
45
50
55
60
2005 Q2 2007 Q2 2009 Q2 2011 Q2 2013 Q2 2015 Q2
PMI Index
-1.5%
-1.3%
-1.0%
-0.8%
-0.5%
-0.3%
0.0%
0.3%
0.5%
0.8%
1.0%Q/Q
PMI Employment Index No Change QES Q/Q
**QES is DFP's official Quarterly Employment Survey of the number of jobs in NI & includes public sector
Discontinuity in QES Series
Job Losses
Job gains
Source: DFP, Ulster Bank & Markit Economics, PMI Index 50.0 denotes threshold between expansion / contraction.
RoI & UK firms maintain strong rates of jobs growth in June but NI firms report a marked slowdown in hiring
Private Sector Employment LevelsMonthly
30
35
40
45
50
55
60
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
NI UK RoI
Source: Markit Economics & Ulster Bank NI
Job Gains
Job Losses
Inflationary pressures remain subdued but have been picking up whereas output prices continue to fall
NI Private Sector Profit Squeeze3 Month Moving Average
30
40
50
60
70
80
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Output Prices Input Prices No Change
InflationD
eflation
Source: Markit Economics & Ulster Bank NI PMI
Profits squeeze
Price of goods & services rising
Regional Comparisons
All UK regions continue to report output growth in June
Output / Business ActivityJune 2015
50 = No change
57.4
61.0
52.351.2
40
45
50
55
60
65
Lon East Wal Y&H SW UK NE EM SE WM NW NI Scot RoI
PMI Index
ExpansionC
ontraction
Source: Markit Economics & Ulster Bank NI PMI
Most of the UK regions posted strong rates of growth in Q2 but rates of growth remain weak in Scotland & NI
Output / Business Activity Q2 2015
50 = No change
57.1
60.5
51.351.4
40
45
50
55
60
65
NE Lon Wal East SE UK SW Y&H WM EM NW NI Scot RoI
PMI Index
Source: Markit Economics & Ulster Bank NI PMI
ExpansionC
ontraction
The RoI reported the fastest rate of growth in business activity over the last 12 months & Scotland the slowest
Output / Business Activity12 months to June 2015
50 = No change
52.7
57.5
60.5
44
47
50
53
56
59
62
65
Lon Wal SE NE East WM UK Y&H EM NW SW NI Scot RoI
PMI Index
ExpansionC
ontractionSource: Markit Economics & Ulster Bank NI PMI
The East of England & the RoI post the fastest rate of employment growth with Scotland & NI the slowest
Employment LevelsJune 201550 = No change
55.7
50.3
58.7
50.4
46
48
50
52
54
56
58
60
62
East UK Lon Wal SW WM Y&H EM SE NW NE NI Scot RoI
PMI Index
IncreasingD
ecreasing
Source: Markit Economics & Ulster Bank NI PMI
NI & Scotland post the weakest rates of job creation within the UK over the last 3 months
Employment LevelsQ2 2015
50 = No change
55.7
52.1
51.1
58.6
46
48
50
52
54
56
58
60
East Wal WM UK SW Y&H Lon NW EM SE NE NI Scot RoI
PMI Index
IncreasingD
ecreasing
Source: Markit Economics & Ulster Bank NI PMI
Scotland, the North East & NI posted the weakest rates of jobs growth over the last year with the RoI the strongest
Employment Levels 12 months to June 2015
50 = No change
55.9
52.1
58.5
51.6
46
48
50
52
54
56
58
60
East WM Y&H UK Lon Wal SE NW EM SW Scot NI NE RoI
PMI Index
IncreasingD
ecreasingSource: Markit Economics & Ulster Bank NI PMI
Sectoral Comparisons
UK construction & services output growth accelerates in June with manufacturing output growth easing
UK Business Activity / Output - PMIs
20
30
40
50
60
70
Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Services Manufacturing Construction
Source: Markit Economics
ExpansionC
ontraction
The UK posts strong rates of growth throughout 2014. Growth eased in Q1 contrary to what the PMI signalled
UK GDP versus UK Composite PMIUK Composite includes Construction
25
30
35
40
45
50
55
60
65
2007 Q4 2009 Q2 2010 Q4 2012 Q2 2013 Q4 2015 Q2
PMI Index
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5GDP Q/Q
GDP Q/Q PMI PMI No Change
Source: ONS & Markit Economics
RoI services & construction output growth accelerates in June but slows for manufacturing firms
RoI Business Activity - PMIsMonthly
20
25
30
35
40
45
50
55
60
65
70
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Manufacturing Services Construction No Change
Source: Markit Economics
Contraction
Expansion
All sectors in NI experienced weaker growth in H2-14 relative to H1-14 with H1-15 even weaker
NI Private Sector Business Activity (PMI)
30
35
40
45
50
55
60
65
2006
H220
07H1
2007
H220
08H1
2008
H220
09H1
2009
H220
10H1
2010
H220
11H1
2011
H220
12H1
2012
H220
13H1
2013
H220
14H1
2014
H220
15H1
PMI Index
Manufacturing Services Construction Retail ExpansionC
ontraction
Source: Markit Economics & Ulster Bank NI PMI
NI manufacturing & services firms report a pick-up in output growth in Q2 but contraction within construction continues
Northern Ireland Private Sector Output 3 month moving average
30
35
40
45
50
55
60
65
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Manufacturing Services Construction
Source: Markit Economics & Ulster Bank NI PMI
ExpansionC
ontraction
Services, manufacturing & construction firms all reported employment growth during the last 3 months
NI PMI - Employment Index 3 month moving average
25
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Manufacturing Services Construction
Source: Markit Economics & Ulster Bank NI PMI
Job Gains
Job Losses
Manufacturing firms report an easing in recent growth rates but nevertheless record two successive quarters of growth
NI Manufacturing Activity3 month moving average
25
30
35
40
45
50
55
60
65
70
Dec-03 Nov-05 Oct-07 Sep-09 Aug-11 Jul-13 Jun-15
Business activity New Orders Employment
Source: Markit Economics & Ulster Bank NI
Grow
th acceleratingC
ontraction accelerating
RoI firms maintain strong rates of output growth rates as UK sees growth ease while NI firms report a sharp pick-up
Manufacturing Output3 month moving average
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
UK NI RoI No Change
Source: Markit Economics & Ulster Bank NI PMI
Contraction
Expansion
NI firms report a significant rebound in new orders growth in Q2 with RoI firms still outperforming UK & NI
Manufacturing New Orders3 month moving average
25
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
UK NI RoI No Change
Source: Markit Economics & Ulster Bank NI PMI
Contraction
Expansion
All economies bar France saw output growth slow in June with the pace of contraction in Greece accelerating
Manufacturing Output - PMI
NI
20
30
40
50
60
70
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
RoI Italy Spain Greece NI France
Source: Markit Economics PMIs
C
ontractionExpansion
Input cost inflation for manufacturers picking up but remains subdued with output prices still falling
NI Manufacturing Input & Output Inflation3 month moving average
30
40
50
60
70
80
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
No Change Input Costs Output Prices
InflationD
eflation
Source: Markit Economics & Ulster Bank NI PMI
Profits squeeze
PMI signals moderation in jobs growth in H2-14 & Q1-15 following record high in Q2-14 but rebound in Q2-15
NI Manufacturing Employment: PMI v QES**
30
35
40
45
50
55
60
65
2005 Q2 2007 Q2 2009 Q2 2011 Q2 2013 Q2 2015 Q2
PMI Index
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
Q/Q
PMI Employment Index No Change QES Q/Q
Discontinuity in QES Series
Job Losses
Job gains**QES is DFP's official Quarterly Employment Survey of the number of jobs in NI firms
Source: DFP, Ulster Bank & Markit Economics, PMI Index 50.0 denotes threshold between expansion / contraction.
Service sector experiences a pick-up in output & orders growth but firms are still hiring staff at a slower rate
NI Service Sector (excludes Retail)3 month moving average
30
35
40
45
50
55
60
65
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Business activity New Orders Employment
Source: Markit Economics & Ulster Bank
Grow
th acceleratingC
ontraction accelerating
RoI & UK firms maintain strong rates of output growth with NI firms reporting a pick-up in Q2
Services Output (excluding Retail)3 month moving average
30
35
40
45
50
55
60
65
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
UK NI RoI No Change
Source: Markit Economics & Ulster Bank NI PMI
Contraction
Expansion
NI firms fail to match the robust rates of growth in the UK & RoI with orders growth rising modestly over last 3 months
Services New Orders (excluding Retail ) 3 month moving average
30
40
50
60
70
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
UK NI RoI No Change
Source: Markit Economics & Ulster Bank NI PMI
Contraction
Expansion
NI’s services firms report a pick-up in input cost inflation in May with pricing power remaining weak
NI Services Input & Output Inflation3 month moving average
30
40
50
60
70
80
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
No Change Input Costs Output Prices
InflationD
eflation
Source: Markit Economics & Ulster Bank NI
NI services firms increased their staffing levels over the last 3 months but below the rates of growth in the UK & RoI
Services Employment3 month moving average
30
35
40
45
50
55
60
65
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
UK RoI NI No Change
Source: Markit Economics & Ulster Bank NI PMI
Contraction
Expansion
Pace of job creation within the services sector eased in H2-14 but has picked up in H1-15
NI Services Employment: PMI v QES**
40
45
50
55
60
65
2005 Q2 2007 Q2 2009 Q2 2011 Q2 2013 Q2 2015 Q2
PMI Index
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
Q/Q
PMI Employment Index No Change QES Q/Q
Discontinuity in QES Series
Job losses
Job gains**QES is DFP's official Quarterly Employment Survey of the number of
jobs in NI and includes the public sector
Source: DFP, Ulster Bank & Markit Economics, PMI Index 50.0 denotes threshold between expansion / contraction.
NI retailers report a significant increase in new orders following 8 months of decline
Northern Ireland Retail PMI3 monthly average
25
35
45
55
65
75
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Business Activity New Orders Backlogs No Change
Source: Markit Economics & Ulster Bank NI PMI
Expansion
Contraction
NI retailers report a return of pricing power with output prices rising. Input costs fall for the 1st time in the survey
NI Retail Input & Output Inflation3 month moving average
30
40
50
60
70
80
90
Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Input Costs Output Prices No Change
InflationD
eflation
Source: Markit Economics & Ulster Bank NI Profits squeeze
NI’s construction firms report a decline in activity and new orders but continue to increase staffing levels
NI Construction PMI3 month moving average
20
30
40
50
60
70
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Output New Orders Employment
Source: Markit Economics, Ulster Bank PMI
ExpansionC
ontraction
50 = No change
Input cost inflation has been easing rapidly with output price inflation beginning to rise
NI Construction Sector Profits Squeeze3 month moving average
20
30
40
50
60
70
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
PMI IndexInput Prices Output Prices No Change
Source: Markit Economics & Ulster Bank
InflationD
eflation
NI’s construction PMI posts jobs growth since Q3 2013 but this is largely due to NI firms working outside of NI
NI Construction Employment: PMI v QES**
25
30
35
40
45
50
55
60
65
70
2005 Q2 2007 Q4 2010 Q2 2012 Q4 2015 Q2
PMI Index
-10.0%
-7.5%
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
Q/Q
PMI Employment Index No Change QES Q/Q
Discontinuity in QES Series
Job losses
Job gains
**QES is NI's official Quarterly Employment Survey of the no. of jobs in NI firms
Source: DFP, Ulster Bank & Markit Economics, PMI Index 50.0 denotes threshold between expansion / contraction.
Very strong rates of output growth amongst RoI firms, robust growth with UK firms & contraction with NI firms
Construction Sector Output - PMI3 month moving average
20
30
40
50
60
70
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
PMI Index
NI UK RoI
Source: Markit Economics
ExpansionC
ontraction
NI orders decrease over last 3 months with UK growth stabilising. RoI firms reporting a pick-up in demand
Construction Sector New Orders - PMI3 month moving average
20
30
40
50
60
70
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
PMI Index
NI UK RoI
Source: Markit Economics
ExpansionC
ontraction
UK firms post a pick-up in civil engineering & commercial activity in June with housing activity stabilising
UK Construction Activity - PMIsMonthly
20
30
40
50
60
70
Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Housing Activity Commercial Activity Civil Engineering Activity
Source: Markit Economics
ExpansionC
ontraction
UK sub-contractor rates recently rising at their fastest rate since the survey began as worker availability an issue
UK Construction PMI
20
30
40
50
60
70
80
Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Rates Charged By Sub-Contractors Availability of Sub-Contractors
Source: Markit
IncraesingD
ecreasing
UK construction firms remain more optimistic about the year ahead than at any time since February 2004
Future Business Activity Index - PMIs
20
30
40
50
60
70
80
90
100
Jun-97 Jun-00 Jun-03 Jun-06 Jun-09 Jun-12 Jun-15
Future Activity Long-Term Average
Source: Markit Economics
In 12mths time do you expect overall activity to be higher than now, lower, or the same?
Optim
ismPessim
ism
RoI’s construction activity experiences a marked pick- up in demand in June across all sectors
Republic of Ireland Construction Activity - PMIMonthly
20
30
40
50
60
70
Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15
Housing Activity Commercial Activity Engineering Activity
Source: Markit Economics & Ulster Bank
ExpansionC
ontraction
RoI’s construction industry still reporting a decrease in the availability of sub-contractors & rising rates of pay
RoI Construction PMI
20
30
40
50
60
70
80
90
100
Jun-00 Feb-02 Oct-03 Jun-05 Feb-07 Oct-08 Jun-10 Feb-12 Oct-13 Jun-15
Rates Charged By Sub-Contractors Availability of Sub-Contractors
Source: Markit Economics & Ulster
IncraesingD
ecreasing
RoI construction firms remain very optimistic about the year ahead
Future Business Activity Index - PMIs
20
30
40
50
60
70
80
90
100
Jun-00 Jun-03 Jun-06 Jun-09 Jun-12 Jun-15
RoI Future Activity RoI Long-Term Average
Source: Markit Economics
In 12mths time do you expect overall activity to be higher than now, lower, or the same?
Optim
ismPessim
ism
Slide 63
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