Ireland: Manufacturing PMI improves in June
July 4, 2016
The Investec Manufacturing Purchasing Managers’ Index (PMI) rose from May’s 27-month low of 51.5 to 53.0 in June. With June’s result, the PMI remains above the 50-threshold that indicates expansion in the manufacturing sector, where it has been for 37 consecutive months.
June’s reading reflects a rebound in output and new orders. Manufacturing output increased on the back of higher client demand. Backlogs of work declined in June and Irish manufacturers increased staffing levels due to higher production requirements. Regarding price developments, input costs rose sharply as prices for commodities increased. In response to higher input costs, Irish manufacturers rose output prices for the first time in five months.
According to the survey report, “the sequence of growth in the sector now extends to 37 months, although we would highlight that with the survey having been conducted between June 13th and June 23rd its findings do not capture the aftermath of Britain’s EU referendum. […] Overall, this report reveals a much better performance by the sector following a soft May. How enduring this proves to be remains to be seen, given the FX headwinds (and allied global growth concerns).”