The manufacturing sector expanded strongly in July as output and new orders grew at robust rates and companies hired at the fastest pace since May 2022, a business survey showed today.
The AIB Ireland Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 55.1 in July from 54.9 in June.
The 50-mark separates growth from contraction.
“Output rose strongly in July, albeit the pace of increase eased slightly from June, with respondents citing continued healthy order books,” David McNamara, AIB’s chief economist, said.
Companies linked higher output to robust order books and improving demand conditions. Total new business expanded for a 19th consecutive month.
New export orders rose only marginally and at the slowest pace since February, with manufacturers citing headwinds from geopolitical uncertainty and the Middle East conflict.
Employment growth reached its highest since May 2022 as firms added staff in response to stronger order books and efforts to expand capacity.
Input price inflation slowed for a second month to its lowest since February. Output price inflation also fell to a four-month low.