Ireland: Manufacturing PMI remains strong in September despite moderation
October 1, 2014
The Investec manufacturing Purchasing Managers’ Index (PMI) decreased from 57.3 in August to 55.7 in September. August’s result had marked the highest point on record. Despite the moderation in September, the index is still above the 50-threshold that indicates expansion in the manufacturing sector, where it has remained since May 2013.
Manufacturing output continued to rise at a marked pace in September. New orders were also up, although not as much as last month. New export orders have now expanded for 15 consecutive months. Manufacturers reacted to new business orders by raising input purchases at a high rate similar to last month. Moreover, higher new orders and expectations of further growth in the coming months led to the first rise in pre-production inventories in five months. In addition, employment among manufacturers extended its positive streak, with new hiring up at the sharpest pace in four months.
According to the survey report, September’s reading reinforces the, “view that the recovery underway both domestically and in many of Ireland's key trading partners is sufficiently robust to withstand any pressures from weak global growth and geopolitical tensions. Our expectation remains that the Irish manufacturing sector will perform strongly into next year.”
Author: Carl Kelly, Economist