Ireland: Manufacturing PMI continues to slide in October
The Investec manufacturing Purchasing Managers’ Index (PMI) lost ground in October, sliding to 54.9 points from 56.3 points in September. The print remained above the critical 50-point threshold that separates expansion from contraction in manufacturing activity, where it has been for over five years, the deterioration signals a loss of pace in the growth of the sector. October’s result marks the lowest print in seven months.
While output and new orders grew at a solid rate in October, thanks to healthy demand from both domestic and overseas markets—with reports of higher demand from U.K. and Russia—growth of both softened from the previous month. Despite the upturns, October saw backlogs of work fall again. Nonetheless, firms increased their payroll numbers. On the price front, prices for raw materials continued to climb, particularly for steel and timber. Manufactures raised output prices in order to adjust to the higher cost burdens. While business sentiment dropped to the lowest in 11 months, firms remained optimistic about future output and were especially upbeat about a rise in export orders from Asia and the U.S.