Ireland: Manufacturing PMI rises to 10-month high in January
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 59.4 in January from December’s 58.3. As such, the index moved further above the 50 no-change threshold, signaling a faster improvement in business conditions from the previous month.
The stronger reading was primarily due to an increase in new orders growth, which hit the highest level in four months, and rising supplier delivery times. Faster stocks of purchases and employment growth also contributed to the higher print. However, amid ongoing material and staff shortages, a decline in output growth dragged on the reading somewhat. Meanwhile, input and output inflation—albeit remaining at record levels—softened slightly, reaching their lowest level since August.
AIB’s Oliver Mangan commented on the challenges posed to firms by sky-high cost pressures:
“The combination of strong demand, disruptions to supply chains and continuing upward trends in prices of raw materials, energy and transportation, meant the pressure on costs remained intense. There were further marked rises in firms input and output prices, though the rate of increase has eased somewhat recently.”
That said, Mangan also highlighted firms’ optimistic economic outlook for this year:
“Manufacturers were very positive on the 12-month outlook for production, with the recovery from the pandemic expected to continue in 2022 and new business growing.”