Ireland: Manufacturing PMI rises to 17-month high in December
January 2, 2017
The Investec Manufacturing Purchasing Managers’ Index (PMI) jumped from 53.7 in November to 55.7 in December, taking it further above the 50-threshold that separates expansion from contraction in the manufacturing sector, where it has been for 43 consecutive months.
December’s print reflected sharper increases in output, new orders and employment. Growth in new business was underpinned by stronger client demand and new orders expanded on the back of increased overseas demand for Irish goods. This resulted in a sharp rise in backlogs of work and a drop in stocks of finished goods to meet increased demand. Likewise, Irish manufacturers hired more staff in December to accommodate additional orders. Regarding price developments, input costs rose, albeit at a softer pace, and higher costs were passed onto consumers.
The survey report stated, “while growth slowed precipitously following the UK’s Brexit vote, the accelerated pace of expansion seen since then shows that the sector has gotten back on track, presumably aided by the kicker from a strong US dollar and ongoing domestic strengthening.”