Ireland: Manufacturing PMI moderates in April; still points to expansion
May 1, 2015
The Investec manufacturing Purchasing Managers’ Index (PMI) fell from 56.8 in March to 55.8 in April. However, the index still rests comfortably above the 50-threshold that indicates expansion in the manufacturing sector.
April’s moderation mainly reflected that total new work and new export business expanded at a slower pace while manufacturing output grew at a faster pace than in the previous month. Employment continued to rise and backlogs of work increased for a third consecutive month. Input prices registered the largest increase since September 2013 and output prices also rose. Purchasing activity grew at a similar rate to that of the previous month and stocks of purchases and of finished goods decreased slightly in April.
According to the survey report, “[a]s we have seen in recent months, Irish manufacturing firms continue to benefit from new product launches and euro weakness. […] Looking ahead, while manufacturing firms based in Ireland are clearly upbeat on their prospects (as evidenced by rising headcounts and purchasing activity), we are a little cautious ahead of next week’s UK general election – if the outcome of that were to put sterling under pressure relative to the euro this will be unhelpful for the sector, as 16% of Irish merchandise exports go to the UK.”