Ireland: Business activity slips in October
The AIB Ireland Composite Purchasing Managers’ Index (PMI) came in at 49.7 in October, down from September’s 52.1. October’s result marked the worst performance since November 2022. As such, the index dropped below the 50.0 no-change threshold, signaling a deterioration in private sector operating conditions from the previous month.
Meanwhile, AIB Ireland Manufacturing Purchasing Managers’ Index (PMI) fell to 48.2 in October from September’s 49.6. Lastly, AIB Ireland Services Purchasing Managers’ Index (PMI) fell to 52.6 in October from September’s 54.5.
Readings for growth of output, new orders and employment worsened in both sectors. In the manufacturing sector, output fell the most since July, new orders the most in 2023 so far, and employment stagnated. In the services sector, output grew at the second weakest rate in the current 32-month chain of expansions, and new orders and employment grew the least in over two-and-a-half years. Looking at prices, input and output inflation eased significantly in the services sector, while in the manufacturing sector, input inflation flipped positive and output inflation turned less negative. Finally, while business sentiment rose in the services sector, it declined in the manufacturing sector.