Finance
Irish manufacturing growth slows to 10-month low in October, PMI shows
Published by Global Banking & Finance Review®
Posted on November 3, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 3, 2025
2 min readLast updated: January 21, 2026
Irish manufacturing growth slowed in October, with PMI at 50.9. Production stagnated and new business growth eased amid weak export sales.
DUBLIN (Reuters) -Growth in Ireland's manufacturing sector slowed to its weakest level in 10 months in October, as production volumes stagnated and new business growth eased amid subdued export sales, a survey found on Monday.
The AIB Ireland Manufacturing Purchasing Managers' Index (PMI) fell to 50.9 in October from 51.8 in September, above the 50.0 mark that separates growth from contraction where it has remained for the whole of 2025.
Production volumes were unchanged in October, ending a nine-month streak of expansion. New business growth was only marginal, with manufacturers citing intense competition and weaker demand from European markets as key challenges.
Employment growth continued for the eleventh month, though at a slower pace, as some firms reported that skill shortages had held back hiring.
Input cost inflation dropped to a 17-month low, driven by lower raw material prices, though higher wages and energy costs persisted. Output prices rose only marginally and at the slowest pace since May 2024, amid the competitive pressures.
Manufacturers remain optimistic about the year ahead, with 45% expecting production to increase and only 9% predicting a decline, although confidence slipped to a three-month low. New product launches and entry into new overseas markets are seen as potential growth drivers.
Ireland's economy as measured by modified domestic demand, or MDD - officials' preferred metric - has grown strongly in recent years and expanded 3.8% year-on-year in the first half of 2025 thanks to growth in personal consumption, government spending and investment.
Ireland's finance ministry last month increased its growth forecast for the year to 3.3% from 2% previously, after the economy shrugged off any material impact from increased U.S. tariffs on the European Union.
(Reporting by Reuters; Editing by Toby Chopra)
The Purchasing Managers' Index (PMI) is an economic indicator that reflects the prevailing direction of economic trends in manufacturing and services. It is based on surveys of private sector companies.
Input cost inflation refers to the increase in the prices of raw materials and other inputs used in the production process, which can affect overall production costs and pricing strategies.
Modified domestic demand (MDD) is a measure of economic activity that reflects the total demand for goods and services within a country, excluding the effects of imports and exports.
Employment growth refers to the increase in the number of jobs available in an economy over a specific period, indicating economic expansion and improved labor market conditions.
Export sales are the sales of goods and services produced in one country and sold to customers in another country, contributing to a nation's trade balance.
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