Ireland: Manufacturing PMI rises to nine-month high
February 3, 2020
Business conditions in the Irish manufacturing sector improved in the first month of 2020. The AIB manufacturing Purchasing Managers’ index (PMI) rose to 51.4 in January from 49.5 in December, marking the highest reading since April 2019 and thus moving above the 50-threshold that indicates an improvement in manufacturing business conditions.
January’s reading largely reflected a rise in output, new orders and employment. New orders rose at the fastest clip in nine months amid improved UK market dynamics and a stable U.S. economy. Meanwhile production increased at the quickest pace since last March on stronger inflows of new work. Consequently, firms also raised staffing levels in the first month of the year. On the price front, input cost inflation decelerated to a near three-and-a-half year low, while output charge inflation rose at the fastest rate in 10 months, which hints at improving profitability. Lastly, firms’ outlook for the year ahead brightened in January, marking the highest level of sentiment in eight months, amid greater certainty with respect to Brexit.
Author: Hanna Andersson, Economist