Ireland: Manufacturing PMI moderates in September
The Investec manufacturing Purchasing Managers’ Index (PMI) fell to 56.3 points in September, down from August’s seven-month high of 57.5 points. The index remains above the crucial 50-point threshold that separates expansion from contraction in manufacturing activity, where it has been for over five years. While the indicator moderated from the previous month, which indicates a slight deterioration in business conditions in the sector, the print remained strong and defies the trend of weakening growth in Eurozone.
September’s print reflected strong but more moderate upturns in output and new orders. However, the rate of growth in output eased only slightly from the previous month. Despite the rise in new orders, backlogs of work declined for the first time in 17 months. Nonetheless, firms raised their in-take of staff in response to the growth in new orders and plans to expand capacity, with the rate of job creation climbing to the highest in seven months. On the price front, higher raw material costs fueled an upturn in overall input costs. Manufacturers raised their output prices accordingly to pass on the burden on cost-adjustment onto consumers. Business sentiment remained upbeat, with firms remaining optimistic that output will rise over the coming years.