Ireland: Manufacturing PMI rises to record high in August
September 1, 2014
The Investec manufacturing Purchasing Managers’ Index (PMI) increased from 55.4 in July to 57.3 in August, which marked the highest point on record. The index has remained above the 50-threshold that indicates expansion in the manufacturing sector since May 2013.
Manufacturing output expanded at the fastest pace in three-and-a-half years in August, primarily due to increased new orders, which were driven by new product lines and strengthening client demand. New export orders increased at a faster pace in August over the previous month. Manufacturers reacted to new business orders by raising input purchases at the fastest rate since February 2011. Moreover, backlogs of work decreased for the first time in three months. In addition, employment among manufacturers extended its positive streak, with new hiring picking up at the fastest rate since May.
According to the survey report, August’s reading, “is a strong outcome, particularly when framed against the backdrop of weakening signs from some Eurozone trading partners of late, although the prognosis for Ireland’s other key export markets (the US and UK) remains encouraging. With manufacturing firms in Ireland stepping up their purchasing and hiring activity, it is clear that they are optimistic of a strong finish to the year.”
Author: Carl Kelly, Economist