Ireland: Manufacturing PMI moderates in May
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 56.4 in May from April’s 59.1. May’s result marked the worst performance since February 2021. As a result, the index moved closer to the 50.0 no-change threshold, signaling a slower improvement in business conditions compared to the previous month.
New orders were restrained by rising prices, which have been stoked by Brexit and the war in Ukraine. Meanwhile, output was limited by supply bottlenecks, with input inflation rising to a near-record high. More positively, businesses continued to take on new workers, with the rate of job creation being the fourth-highest on record.
AIB’s Oliver Mangan commented on the darkening business outlook:
“In terms of the 12-month outlook, while sentiment remains positive, it was at its lowest level since end 2020, amid concerns around rapidly rising inflation and the war in Ukraine. In this regard, input prices rose at their second-fastest pace on record, with marked increases in raw materials, energy and fuel costs. Faced with surging input prices, manufacturers raised their own prices by a survey-record degree for a third successive month.”