Irish home-building contracted in January for a third month as increases in borrowing costs curbed demand for houses and apartments, threatening to end a decade-long property boom.
An index tracking residential construction rose to 47.7 from 47.4 in December, NTC Economics Ltd. and Belfast-based Ulster Bank, the Irish unit of Royal Bank of Scotland Group, said in a statement. A reading below 50 indicates contraction.
The European Central Bank has increased its benchmark lending rate six times since late 2005 and signaled it will do so again at least once more. That’s slowing demand for property in the euro area’s fastest-growing economy and curbing the pace of residential construction.
The gauge of home-building is part of a monthly construction activity index published by Ulster Bank. The overall index rose to 54.8 in January from 54.7 in December.
