Ireland: Manufacturing PMI remains well above in expansionary territory despite easing in November
December 1, 2015
The Investec Manufacturing Purchasing Managers’ Index (PMI) inched down from 53.6 in October to 53.3 in November. In spite of the drop, the PMI remained comfortably above the 50-threshold that indicates expansion in the manufacturing sector where it has been for 30 months.
November’s result reflect a strong rise in new business and new orders. New orders increased for the twenty-ninth consecutive month. This trend was also mirrored by new exports business that also grew sharply. Output, as a result, also grew as it has on a monthly basis for two-and-a-half-years. Employment continued to rise as new orders also grew. Input prices declined for the third consecutive month as the price of steel, food products and oil dropped from the previous month.
According to the survey report, “we also note that Irish manufacturing companies increased their Quantity of Purchases at the sharpest pace in three months, which likely indicates a sense of optimism around the outlook for the sector, although it should be noted that some of this increase also reflects a need to replenish inventories, as Stocks of Purchases fell for a second month running. Last month we noted that ‘manufacturing firms here remain positive on the outlook, but perhaps not as much as they were earlier in the year when the prospects for the global economy (and, within that, emerging markets in particular) seemed stronger’.”