Ireland: Manufacturing PMI hits record high in April
The AIB manufacturing Purchasing Managers’ Index (PMI) hit a new record high in April, rising to 60.8 from March’s 57.1. As a result, the index moved further above the 50-threshold that indicates a strong improvement in Irish manufacturing business conditions compared to the previous month.
April’s jump was chiefly owing to surging output and new orders, as the easing of restrictions released pent-up demand. Similarly, new export orders logged a marked growth, largely supported by higher demand from the UK, U.S. and Asian markets. Against this backdrop, firms hiked their employment levels at the fastest rate since December 2017, while business expectations with regards to output in the 12 coming months rose to a new series’ high. Regarding prices, input cost inflation accelerated to the second fastest rate since the beginning of the survey, amid logistics disruptions stemming from Brexit and the Suez Canal blockage, as well as raw material shortages. As a result, manufactures passed on the burden to customers, with selling prices growing at the quickest pace since late-2002.