Ireland: Irish Manufacturing PMI reaches almost two-year high in June
July 1, 2017
The Investec Manufacturing Purchasing Managers’ Index (PMI) inched up from May’s 55.9 to 56.0 in June, an almost two-year high. The indicator remains above the 50-threshold that separates expansion from contraction in the manufacturing sector, where it has been for over the past four years.
Higher output was driven by an increase in new orders on the back of higher demand. New orders rose for the eleventh consecutive month buttressed by a rise in client demand and business from abroad. Increased demand resulted in an accumulation of backlogs of work—which expanded at the fastest pace this year—and higher staffing levels. Purchasing activity increased to accommodate higher demand and resulted in longer delivery times. Regarding latest price developments, input costs and output prices rose sharply.
Assessing the latest one-year outlook reading among Irish manufacturers, Chief Economist Philip O’Sullivan commented that, “today’s release provides us with a complete picture of how the Manufacturing sector performed over the course of H1 2017. We note that the implied growth rate quickened over the course of Q2, indicating that the sector exited the period with a strong tailwind behind it. Given how leveraged Ireland is to international economic developments and the generally improving global backdrop, we are unsurprised by this.”