Ireland: Manufacturing PMI hits five-month high in December
January 4, 2021
The AIB manufacturing Purchasing Managers’ Index (PMI) climbed to 57.2 in December from November’s 52.2, ending the year with the best result since July. As such, the index moved further above the 50-threshold, indicating an improvement in Irish business conditions compared to the previous month.
December’s upturn largely came on the back of a continued rise in new orders, which expanded at the fastest pace in five months amid improving demand and also lifted production. On the price front, input costs rose in December due to raw material shortages and rising demand, while output charge inflation also increased. Lastly, although firms remained optimistic over the outlook in the coming year in December, sentiment softened from the previous month, largely owing to rising uncertainty regarding a UK-EU trade deal.
Author: Hanna Andersson, Economist