The headline AIB Ireland manufacturing purchasing managers' index posted 50.1 in July, up from 47.4 in June, and higher than the neutral 50-mark separating growth from contraction. It was the first time in five months it broke that neutral mark.
S&P Global noted a renewed rise in production activity at the start of the third quarter, which it said was a "stark contrast to the sharp decline seen at the end of the first half of the year."
S&P Global said: "Demand conditions, while continuing to deteriorate for a fifth straight month, showed tentative signs of recovery. The rate of decrease moderated to a four-month low and signalled only a marginal fall in new orders received at Irish goods producers."
David McNamara, AIB chief economist, said: "Price pressures remained a concerning feature of the survey in July. Input price inflation accelerated to a 17-month high, reflecting higher raw material and transport costs. Output price inflation also rose, as firms attempted to pass on higher input costs, but the rate of inflation eased on the month."
The AIB Ireland manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 250 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. The data were collected between July 11 and 24.
