Ireland: Manufacturing PMI gains momentum in October
November 3, 2014
The Investec manufacturing Purchasing Managers’ Index (PMI) increased from 55.7 in September to 56.6 in October. The result marked the second-highest point on record, and the index is comfortably above the 50-threshold that indicates expansion in the manufacturing sector.
Manufacturing output continued to rise at a marked pace in October. New orders were also up, extending the current streak of gains to 16 months. New export orders also expanded, although at a more moderate pace compared to previous months. Manufacturers reacted to new business orders and expectations for further growth by raising input purchases at the sharpest pace in 44 months and building up stocks to a record level. In addition, employment among manufacturers extended its positive streak, with new hiring up at the sharpest pace since May.
According to the survey report, “the generally positive trends outlined above are particularly welcome in light of the more unsettled global backdrop. While we wouldn’t exclude the possibility of a softening in the headline PMI over the coming months due to Ireland’s susceptibility to adverse external factors, today’s release nonetheless shows that Q4 has gotten off to a good start for the manufacturing sector.”
Author: Carl Kelly, Economist