The Irish manufacturing sector was negatively impacted in January by new lockdown measures and UK trading arrangements, according to the latest PMI® data from AIB. Output and new orders both fell sharply, reversing the strong growth seen in December. Suppliers’ delivery times lengthened to the second-greatest degree on record and cost pressures intensified. More positively, employment rose slightly, and firms were more optimistic regarding the 12-month outlook.
The headline AIB Ireland Manufacturing PMI® is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector.
The PMI retreated sharply to 51.8 in January from December’s 57.2, leaving it at a three-month low. The latest headline figure signalled an overall improvement in manufacturing business conditions, but this masked much weaker trends for the key components of output and new orders. These both fell sharply during the month, with both sub-indices posting the second steepest month-on-month declines over the survey history.
The PMI was held above 50.0 mainly due to a near-record lengthening in suppliers’ delivery times and another strong rate of growth in input stocks, while employment offered a broadly neutral contribution.
The full Republic of Ireland Manufacturing PMI® Report is attached.
Marketing and Membership Administrator
Tel: 020 7747 8121 (direct line)