Ireland: Manufacturing PMI eases in August
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 62.8 in August, down from July’s 63.3. As a result, the index remained firmly above the 50-threshold, signaling a continued improvement in business conditions from the previous month, albeit at a slower pace.
The reading was driven in part by lower rates of growth in output and new orders, although they remained close to record levels, with the 12-month outlook for output remaining strong, albeit decreasing somewhat. Supply chain pressures continued to bite, with suppliers’ delivery times rising to a near-record level. Inventory purchases also edged up.
Meanwhile, inflationary pressures were stoked by shortages of raw materials and rising transport costs, with August’s input inflation figure only coming in slightly lower than July’s. Output prices registered a similar increase.
Oliver Mangan, AIB chief economist, noted:
“The AIB Irish Manufacturing PMI for August indicated another month of strong performance for the sector. While the headline index reading of 62.8 was lower than the 63.3 level recorded in July, it was still the fourth highest on record, consistent with a strong rate of improvement in manufacturing. The index has now remained above 60 for five consecutive months. The results from the Irish PMI data remain broadly in line with strong PMIs from some of the key advanced economies.”