Ireland: Irish Manufacturing PMI points to expansion in October
November 1, 2016
The Investec Manufacturing Purchasing Managers’ Index (PMI) edged up from 51.3 in September to 52.1 in October. The PMI still remains above the 50-threshold that separates expansion from contraction in the manufacturing sector, where it has been for 41 consecutive months.
October’s print reflected a recovery in output and new orders from July’s multi-year low and marks the best reading since June. Output rose on the back of higher new orders and improved efficiency. New business rose for the third month running and was supported by strengthening client demand. New export orders increased, though the rate of growth eased due to the depreciation of the British pound. Backlogs of work increased for the first time in ten months due to a rise in new orders and Irish manufacturers’ staffing levels rose as new orders rose. Regarding price developments, input costs and output prices rose.
The survey report stated, “we previously spoke of ‘well-founded caution on the part of Irish manufacturers as we head into the year end’. October’s modest improvement is not enough to make us change that assessment.”