Ireland: Manufacturing PMI falls to six-month low in September
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 60.3 in September from August’s 62.8. September’s result marked the weakest reading since March. Consequently, the index remained entrenched above the 50-threshold, but signaled a reduced improvement in business conditions from the previous month.
The more muted reading was due to a reduction in growth rates of output, new orders, employment, and inventory purchases, although all remained at relatively high levels. New order growth was the weakest since March, as was inventory purchases growth, while output growth hit a five-month low and employment growth was the weakest since February. On the price front, input and output price inflation ballooned to record highs, with suppliers’ delivery times continuing to increase amid ongoing supply chain disruptions.
Oliver Mangan, AIB chief economist, noted:
“The easing back of the Irish PMI is in line with the trend seen in other countries, with the flash September readings for the index falling from 60.3 to 56.3 in the UK and from 61.4 to 58.7 in the Eurozone. Shortages of raw materials, key inputs and labor are holding back manufacturing activity in many economies.”