Ireland: Manufacturing PMI virtually unchanged at strong position in July
August 1, 2014
The Investec manufacturing Purchasing Managers’ Index (PMI) edged up from 55.3 in June to 55.4 in July, which marked the highest point in three months. The index has remained above the 50-threshold that indicates expansion in the manufacturing sector since May 2013.
New orders rose for the thirteenth consecutive month, driven by improving domestic economic conditions and stronger export markets. Manufacturing output picked up to a three-month high, continuing the streak of monthly gains that has been seen since June 2013. Manufacturers increased their purchasing activity amid stronger client demand. Meanwhile, stocks of finished goods decreased as inventories were used to meet orders. In addition, employment among manufacturers extended its positive streak to 14 months, with improving new business forecasts encouraging additional hiring.
According to the survey report, July’s reading sustains the ongoing view that, “the recovery both at home and in Ireland’s key trading partners bodes well for the domestic manufacturing sector. Therefore, we are optimistic of further good readings, similar in nature to todays, in the months ahead.”
Author: Carl Kelly, Economist