Irish manufacturing bucks European trend with fifth month of expansion
MANUFACTURING levels rose again in September, the fifth month in a row the sector has expanded.
The latest Manufacturing Purchasing Managers Index (PMI) from NCB Stockbrokers shows a rate of 51.8, up from 50.9 in August.
The PMI measures manufacturing growth in a single number. A figure over 50 means production is expanding, under 50 means it is shrinking. The index is seen as a key indicator of the health of any economy.
Growth was driven by an increase in new orders, which has now expanded every month since February. Orders for export however declined on a seasonally adjusted basis for the first time since at least March.
“The increase in new orders is presumably a key factor behind the robust employment reading in the index,” said NCB chief economist Philip O’Sullivan.
“On the pricing side, a big pick-up in output prices points to firms being able to offset at least some of the pressure from input prices), which has been driven by higher commodity prices,” he added.