Ireland: Composite PMI increases in January
The S&P Global Composite Purchasing Managers’ Index (PMI) came in at 52.0 in January, up from December’s 50.5. As such, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in private sector operating conditions compared to the previous month.
The manufacturing PMI rose to 50.1 from 48.7 and the services PMI rose to 54.1 from 52.7. The improvement in the manufacturing sector came as output and new orders fell at a weaker rate. The improvement in the services sector came as output and new orders rose at a faster rate. Meanwhile, firms in both sectors continued to add to their labor force. Business activity likely improved as a result of softening inflation: Input and output inflation fell to roughly two-year lows in the manufacturing sector and to more than one-year lows in the services sector. This brighter economic panorama led business sentiment to rise to its highest level since February 2022 in both sectors.