Tuesday 17 October 2017

Irish manufacturers record fourth largest growth in the eurozone

Stock image: PA
Stock image: PA
Ellie Donnelly

Ellie Donnelly

Irish manufacturers have recorded the fourth largest growth in the eurozone, as factories in the eurozone recorded their fastest growth in six years, the Guardian reports.

Germany led with way, with factories there recording a 73 month high in growth, followed by Austria and the Netherlands.

Irish factories attained a score of 55.9 on the PMI index.

Any reading over 50 in the PMI is deemed growth.

In Ireland, output growth in the manufacturing sector quickened to a 22 month high, driven by improvements in client demand which led to a three month high for new orders, in turn leading to a growth in production.

The health of the manufacturing sector in Ireland has now strengthened on a monthly basis throughout the past four years, with the latest improvement the largest recorded since July 2015, according to the seasonally adjusted Investec Purchasing Managers Index.

Research conducted in Ireland found that firms are broadly confident that output will continue to rise over the coming year, with the optimism linked to predictions of new order growth amid stronger economic conditions.

The positive expectations has led manufacturers in Ireland to take on extra staff in May, the eight month running in which job creation has been recorded.

"Apart from signs of higher investment in inventories, another indication of firms’ confidence in the outlook is the employment index, which expanded at its fastest pace in the current eight month sequence of growth," Philip O'Sullivan, of Investec said.

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