Irish construction spending will fall to €10.5 billion (Dh49.5bn) next year from a peak of €39bn in 2007 as a new home slump spreads to office and store building, according to Davy, a Dublin-based securities firm.
Construction will amount to less than eight per cent of the economy next year, down from 24 per cent in 2007, Davy forecast. "The deep recession in the sector will intensify if anything over the next year," Rossa White, chief economist at Davy, wrote in a note yesterday. "Most of the incremental weakness in activity will shift from housing to non-residential."
A slump in building has pushed Ireland into its first recession in 25 years.