Any figure greater than 50.0 indicates overall improvement of the sector, with June's figures indicating that the slowdown in activity accelerated.
This means that the health of the Irish manufacturing sector worsened for the fourth straight month and at an accelerated pace. The downturn was the most marked since July last year.
S&P noted contractions in new orders and output as a main cause to the deterioration, alongside a continued decline backlogs of work.
More positively, S&P said the year outlook for production improved in June. Expectations across manufacturing companies based in Ireland were the strongest recorded since the start of the year, it added.
David McNamara, AIB Chief Economist, said: "The Output Index has now been below the 50 mark for four months running, with the fall in factory production the fastest recorded since July 2023. Respondents in June attributed the fall to reduced client activity."
"New orders fell at the second-fastest pace in 18 months. Firms linked this drop to the current economic climate, which has impacted both domestic and foreign demand. This has also been reflected in new export orders coming in below 50 for the fifth successive month as foreign demand remained subdued."
The PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 250 manufacturers. The responses were collected from June 12 to 21.
