Ireland: Manufacturing PMI records worst reading since March in December
January 3, 2022
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 58.3 in December from November's 59.9. December's result marked the weakest reading since March. However, the index remained above the 50-threshold, signaling a continued, albeit slower improvement in business conditions from the previous month.
The weaker reading was primarily due to a softer rise in supplier delivery times, although these remained at elevated levels amid ongoing supply bottlenecks, with input inflation still marked. Moreover, lower growth in output, new orders, stocks of purchases and employment also contributed to the lower headline reading.
AIB’s Oliver Mangan commented:
“Capacity constraints are still very evident in the sector […] resulting in a further marked increase in firms’ input prices. Manufacturers, though, are passing on these higher costs to customers, with output prices continuing to rise at a rapid pace, increasing at the third-fastest rate since the series began in 2002.”