According to the latest figures available, the fall in the Irish construction industry has started slowing and the sector might be moving towards a stable position.

The Ulster Bank Construction Purchasing Managers' Index (PMI) showed that the rate of decline in the sector was recorded at its slowest level in eight months. The Ulster Bank Construction PMI for Ireland in January was recorded at 45.8 compared to a much sharper decline of 43 recorded in December.

The comprehensive index is seasonally adjusted and it shows changes in the sector. A rating of more than 50 shows expansion while a rating of below 50 shows contraction. The decline slowed down both in both residential and commercial projects during January in the country.

Housing activity recorded the slowest decline, which is at its lowest level in one year. On the other hand, the rate of fall in civil engineering activity grew during the month and its fall was faster than the overall construction sector.

Simon Barry, chief economist Republic of Ireland at Ulster Bank, said, "The first reading of 2013 of the Ulster Bank Construction PMI indicates that the rate of deterioration in business conditions in the sector has eased slightly so far this year. While it remains the case that activity levels continue to decline, the pace of decline eased to its slowest since May 2012."