Finance
Irish manufacturing growth hits one-year high in February, PMI shows
Published by Global Banking and Finance Review
Posted on March 3, 2025
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Published by Global Banking and Finance Review
Posted on March 3, 2025
DUBLIN (Reuters) - Ireland's manufacturing sector saw its fastest growth in a year in February, driven by a surge in new orders and increased production volumes, a survey by AIB and S&P Global showed on Monday.
The AIB Ireland Manufacturing Purchasing Managers' Index (PMI) rose to 51.9 in February from 51.3 in January, marking the second consecutive month above the 50.0 line indicating expansion.
It was the highest reading in 12 months, signalling a moderate improvement in business conditions.
February saw the strongest rise in new orders since May 2022, with domestic demand showing significant improvement, although export sales remained flat.
"Output rose robustly in February, amid a general improvement in demand conditions," said David McNamara, AIB Chief Economist. However, he noted "continued softness in external demand," particularly from Europe.
Employment in the sector increased for the third month in a row, although the rate of job creation slowed compared to January. Backlogs of work accumulated at the fastest pace since April 2022, as firms faced longer wait times for raw materials.
Input cost inflation hit its highest level in two years, driven by rising raw material prices and increased salary payments. This led to a sharp rise in output prices, the fastest since September 2024, as manufacturers sought to protect margins despite competitive pressures.
Looking ahead, around 40% of manufacturers expect output to rise over the next 12 months, although confidence has eased to its lowest since September 2024 due to concerns about the global economic outlook.
(Reporting by Reuters; Editing by Hugh Lawson)