The Irish construction sector showed little sign of recovery in May, with the respective declines in activity and new business gathering pace during the month. Companies lowered their employment levels and purchasing accordingly. Meanwhile, input cost inflation remained elevated. The Ulster Bank Construction Purchasing Managers’ Index (PMI)– a seasonally adjusted index designed to track changes in total construction activity – dropped for the third consecutive month to 41.1 in May, from 43.7 in April. The reading pointed to a substantial reduction in activity that extended the current sequence of decline to four years. Moreover, the rate of contraction was the strongest in the year-to-date.