Ireland PMI August 2019

Ireland

Ireland: Manufacturing PMI dips to over six-year low in August

September 2, 2019

Business conditions in the Irish manufacturing sector worsened for the third consecutive month in August and marked the sharpest contraction since April 2013. The AIB manufacturing Purchasing Managers’ Index (PMI) inched down to 48.6 from 48.7 in July.

August’s print was underpinned by a continued drop in new business amid ongoing Brexit uncertainty and falling output. Export sales declined in the month, mainly owing to reduced orders from the UK. As a result, backlogs of work slid. Nonetheless, manufacturers continued to hire workers, although the rate of job creation was negligible. Despite a higher cost burden owing to increased prices for raw materials, firms lowered their output prices in a bid to remain competitive. Meanwhile, manufacturers’ sentiment soured in August, sliding to a 37-month low on Brexit uncertainty.

Commenting on the latest print, Oliver Mangan, AIB chief economist, stated:

"Irish manufacturing activity, then, has been hit by a double whammy of global weakness in the sector and Brexit uncertainty. It is unlikely to pick up until these headwinds subside. However, output could be boosted in the next couple of months if firms start to stock pile ahead of the latest Brexit cliff-edge date of end October."

FocusEconomics Consensus Forecast panelists expect fixed investment to grow 9.4% in 2019, which is unchanged from last month’s forecast. For 2020, the panel sees fixed investment growth decelerating sharply to 5.2%.


Author:, Economist

Sample Report

Looking for forecasts related to PMI in Ireland? Download a sample report now.

Download

Ireland PMI Chart


Ireland Manufacturing PMI August 2019 0

Note: Markit Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 point to a contraction.
Source: IHS Markit, AIB


Ireland Economic News

More news

Search form