Ireland: Manufacturing PMI improves in March
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose to 59.4 in March from February’s 57.8. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions compared to the previous month.
Input and output inflation hit the highest level on record, but the PMI improved in March over last month regardless as new orders and production strengthened. New orders piled in at the fastest rate since August 2021 as customers sought to avoid supply chain disruptions and rising prices. Production struggled to keep up, despite output rising at the fastest rate in three months and employment growing at the fastest pace in seven months; Production continued to be handicapped by supply bottlenecks and worker absences related to Covid-19. Although the PMI remained at record levels, firms’ year-ahead output expectations dimmed: The war in Ukraine is expected to worsen raw materials shortages and limit external demand.
AIB’s Oliver Mangan commented on the reading:
“There are three clear messages that can be gleaned from the Irish PMI manufacturing data for March; continuing strong growth in activity, a weakening of sentiment on the outlook for business and very elevated inflationary pressures.”