Ireland: Manufacturing PMI logs new record high in May
June 1, 2021
The AIB manufacturing Purchasing Managers’ Index (PMI) logged a new series’ high, jumping to 64.1 in May, well above April’s 60.8. As a result, the index moved further above the 50-threshold that indicates a robust improvement in Irish manufacturing business conditions compared to the previous month.
May’s upturn came largely on the back of skyrocketing output and new business, with both expanding at a record-breaking pace. This came on the back of strengthening domestic demand amid the easing of the nationwide lockdown restrictions, and a solid increase in new export orders, primarily from U.S. and Europe. Moreover, manufacturers hiked their staffing levels in a bid to cope with rising demand; employment rose at the second fastest pace in the series’ history. On the inflation front, raw material shortages and logistics disruptions led to a significant spike in input cost inflation, also prompting businesses to raise their selling prices at a record-breaking rate.
Author: Alexandros Petropoulos,