Ireland: Manufacturing PMI edges up in October
November 2, 2020
The AIB manufacturing Purchasing Managers’ Index (PMI) ticked up to 50.3 in October from 50.0 in September. As such, the index placed slightly above the 50-threshold, indicating a marginal improvement in Irish business conditions at the start of the final quarter of the year.
October’s reading largely came on the back of broadly stable manufacturing output, after having declined in the previous month. However, new orders contracted, albeit at a softer pace than in September, amid weakening demand conditions. More positively, firms raised employment, marking only the third round of job creation in the past year, likely owing to optimism with regard to future output. On the price front, input cost inflation slowed from the prior month, while firms raised their output charges for the second time in the past eight months. Lastly, although business sentiment remained in positive territory, it was the weakest in five months.
Author: Hanna Andersson, Economist