The manufacturing sector expanded strongly in October, supported by sharp rises in output and new orders and the fastest increase in stocks of purchases since January 2023, a business survey showed today.
The AIB Ireland Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 55.2 in October from 55.5 in September.
That was well above the 50 mark that separates growth from contraction.
Output growth eased from September’s four and a half year high but remained solid, while new orders rose at an accelerated pace that was the second-fastest since April 2022, helped by stronger domestic and overseas sales.
Today’s reports shows that export orders increased for a ninth consecutive month. Employment also strengthened, with the pace of job creation reaching a three-month high as firms hired to meet demand and expand capacity.
Purchasing activity grew at its fastest rate since May, and stocks of purchases rose at the quickest pace since January 2023 as some manufacturers built safety stocks amid shipping delays and tight transport capacity.
But cost pressures intensified, with input price inflation accelerating to its fastest since June on higher energy, fuel and raw material prices, today’s survey noted.
Output charges also rose at the strongest pace since June as firms passed on transport costs.
AIB said that manufacturers remained upbeat about the coming year. Around 41% of firms expected output to rise over the next 12 months, while 8% forecast a decline.