Ireland: Manufacturing PMI hits over-16-year high in February
March 2, 2015
The Investec manufacturing Purchasing Managers’ Index (PMI) rose from 55.1 in January to 57.5 in February, which marked the highest value since December 1999. As a result, the index moved even further above the 50-threshold that indicates expansion in the manufacturing sector.
February’s print reflected a faster increase in both output and new orders than in the previous month. Growth in new exports orders also gained speed compared to the previous month. Employment rose while the pace of job creation grew at the fastest pace on record. Input costs decreased, reflecting that lower prices for oil and plastic more than compensated for the weak euro, and companies again reduced their output charges. According to Investec, purchasing activity recorded a steep increase and stocks of finished goods continued to drop.
According to the survey report, “[t]he latest Investec Manufacturing PMI Ireland report shows a marked strengthening in conditions in the manufacturing sector here in February. […] [T]his is a surprisingly good report, especially when you consider some of the unhelpful international developments seen during February, such as Greece, Ukraine, the Middle East and North Africa. Last month we said that “the sector remains in growth mode”. Today’s report gives an indication of how resilient this growth is, but we would caution that any uncertainty ahead of the upcoming UK election […] is likely to put that to the test.”