Growth in Ireland's Manufacturing Sector
Ireland's manufacturing sector saw its fastest growth in a year in February, driven by a surge in new orders and increased production volumes, a survey by AIB and S&P Global showed on Monday.
The index measures the response of 250 purchasing managers to a monthly survey and converts the results into a single number – a number over 50 is an indication of growth while any number under the 50 mark represents contraction in the sector.
Moderate Improvement in Business Conditions
AIB noted that staying above the 50 threshold points to ‘moderate improvement’ in business conditions.
Challenges and Optimism for the Future
The February data is not all positive. The month saw the strongest increase in input costs in two years, and the month saw a fall in export orders. However, the period saw the fastest rise in new orders since 2022 and an increase in business growth.
Ireland vs. Other Economies
Ireland’s manufacturing PMI in February is above the same for the eurozone (47.3), US (51.6), and UK (46.4).
Expert Insight from AIB's Chief Economist
AIB chief economist David McNamara said growth in Ireland was recorded despite a fall in European demand.
“Output rose robustly in February, amid a general improvement in demand conditions. This was reflected in accelerated growth in new orders, but respondents did note continued softness in external demand."
“This weakness was evident in stagnant export orders, with subdued European demand cited. Hiring expanded in February, albeit at a slower pace than last month, as firms planned for higher expected output.”