Ireland: Manufacturing PMI turns pessimistic for the first time in more than five years
July 1, 2019
In June, business conditions in Ireland’s manufacturing sector dipped into negative territory for the first time since May 2013. The AIB manufacturing Purchasing Managers’ Index (PMI) fell to 49.8 from 50.4 in May, amid a wider downturn in the Eurozone and lingering uncertainty over the ultimate outcome on Brexit.
Notably, new business fell for a second consecutive month in June, while new orders contracted at the fastest pace since January 2012. That said, output rebounded from May—albeit marginally—, while stocks of finished goods rose at record-high rate amid hopes of a pick-up in demand in the near-term. Firms also increased purchases of raw materials, albeit at a softer pace, thus overall input prices to climb. Manufacturers lifted output prices only marginally in response, however. On the employment front, firms hired at a faster pace in June, although the rate of job creation was only marginally above May’s 32-month low. Meanwhile, business sentiment fell from May and posted the weakest print in almost three years amid looming Brexit uncertainty.
Author: Nicolás J. Aguilar, Economist